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Principles of Insurance : Contribution
Although the
Insured may effect more than one policy to cover the same property or
interest, he/she cannot recover in total more than a full
indemnity.
Note:
Cover can only arise when the policies:
- Cover the
same peril
- Cover the
same subject matter
- Are
effected by or on behalf of the same Insured
Example:
An insured loses his/her watch whilst on holidays. He/she has holiday insurance which covers the loss. But he/she also has the watch covered under his/her house policy. The cost of the claim should be shared by both policies ie. the insured cannot claim twice.
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