LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Insurance

CA Bhaskar Reddy (Unemployed) (126 Points)

16 February 2008

Hi Friends

I am Bhaskar here.I have a doubt about insurance.

whether same stock can be insured with different insurance companies in the same period. if so, what is the consequence if the stock damages

Awaiting for valuable replies

Reply
Follow
Share

3 Replies

shyam (student) (544 Points)
Replied 16 February 2008

Good question I think a person can claim with both the insurance companies. But my friend if u r thinking practicaly than why a person do such? and paid for both?

pushpendra (Director- FinMAT Consultants) (1703 Points)
Replied 16 February 2008

Stock can be insured with any no. of company but but you cann't claim for loss with more than one co. because it is not the profit policy it is conpensation policy. purpose of insurance is to compensate your loss not the earn profit. P.A. policy is benifit policy . u can take the claim from as many co. from u have insured.

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 17 February 2008

Bhaskar,Puspendra is correct with just small correction you can claim as many as company but your total amout of claim cannlt exceed your actual loss.Other wise instead of loss making it will be profitable . Next day se sab aag he lagane bhet jayenge aur sari ins company 2 din mai band hahahahah