Double insurance:
When a person gets his life or foods insures with more than one insurance company is called double insurance. When two or more then two policies are taken to cover the same risk, it is called double insurance.
For Example, if a house worth 50000 is insured under two policies of 40000 and 30000 respectively. It is a case of double insurance .but in the case of loss the insured cannot recover any amount exceeding the value of loss subject to a maximum of 50000. Double insurance is profitable only in case of life insurance. A man may take any number of policies in his life and in case of death his legal representatives will be entitled to get the amount of all the policies.
