insurance doubt

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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

Replies (3)

Yo can have multiple insurance with 2 or more insurance companies. In such a situation if claim comes the claim amount will be divided according to the sum assured between these insurance companies. No Insured can make any profit out of such claim by insuring to 2 or more insurance companies. In this case Law of Subrogation will come.

Insurance is only a mechanism where we can cover the risk . There are different types of policies for Stock

Stock Fire Floater Policy

Stock Fire Declaration Policy.

If you are taking any STock Fire policy ensure that Material held under Trust is also covered.

Regarding Insurance you can ask me anything

Regards

CS Jithesh

Yes. CS. Jithesh is right. If same subject interest is covered by insurance twicely, contribution clause is applicable and the loss shall be shared by all the insurers proportionately.

So, it is not wise decision to get the same covered with double insurance.

I think it will good to having your stock insure with single insurance company so you get good claim return on your stock damage.


CCI Pro

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