Double Insurance Law and Legal Definition

Double insurance is a type of insurance where the same subject matter is insured more than once. In such cases the same subject is insured, but with different insurers. The method of double insurance is considered a legal act. In case of loss the insured can claim from both the insurers and the insurers are liable to pay under their respective policies.

The features of double insurance are:

1. subject matter is insured with two or more insurance companies;

2. the insured can claim the amount from the policies; and

3. the insurer cannot claim more than the actual loss.

Double insurance also follows the basic principles of insurance. Thus a double insurance does not allow for unjust enrichment of the insured.