My car was insured twice thanks to the incessant calling by the agents with two different insurers. Is there any problem if I continue to keep both the policies?
Arun Kumar, Bengaluru
There is no benefit in retaining both the policies unlike a life insurance policy, where an insured could benefit from holding multiple policies. General insurance contracts are contracts of indemnity, which means the insurers promise to make up for your financial loss by putting you back in the same state where you were just before the loss occurred. This essentially means that even if your car is insured with two insurers, you cannot get two claims for the same loss. Even if you file a claim with one of the insurers, both the insurers will share the loss in the ratio of the sum insured. Therefore, there is no problem if you continue with both the policies, but you will not stand to gain by holding two policies. It is better if you cancel one policy and claim a refund of the premium.
