Can You Have Two Insurance Policies on the Same Car?

Car Insurance is an essential requirement for all vehicle owners. According to Indian law, Car Insurance is mandatory for all vehicles to drive on Indian roads. This ensures the safety of the public who drive on the road. 

 

We all know the importance of Car Insurance, and car owners can purchase insurance from any one of the insurance providers. In some cases, we get a question: Is purchasing Car Insurance from two different insurance providers legal? If you are searching for the answer to that, then you have landed on the right site.

 

Is It Illegal to Have Double Insurance Policies for the Same Vehicle in India?

The answer is yes; you can get two car insurance policies for the same vehicle. However, purchasing more than one policy is not advisable, as it can cause major mishaps for the policyholder and the insurance provider.

 

One insurance provider will also not provide double insurance for the same product. So, two different insurance providers providing insurance for the same product may reject it, and they may find it not applicable according to their company policy. Other insurance providers may find it unlawful and may reject two policies for the same car.

 

If you buy two policies from different insurance providers, you can incur double expenses, and you will have to pay more for the premiums. Additionally, claims can be delayed due to purchasing two policies from different insurance providers. This can create unnecessary hassle. So, it is recommended that you avoid buying two Car Insurance policies.

 

Understanding the Risks of Double Insurance Fraud

When an entity or an individual wilfully attempts to claim the full value of the loss from multiple insurance providers for the same incident, it is considered as double insurance fraud. Double insurance fraud can be attempted by a single policyholder or from an organisation. The key aspects and risks of double insurance frauds explained below.

 

Legal Issues

Wilfully purchasing multiple policies from different insurance providers is considered double insurance fraud, which is illegal and unethical. Insurance providers consider it fraudulent activity, and both providers can cancel their policies. It is also considered a criminal offence and can lead to criminal charges, civil penalties, fines, and even imprisonment.

 

Impact of Double Insurance on Insurance Companies

Due to double insurance, insurance companies can face significant financial losses. Insurance providers may end up paying more than the actual loss incurred by the policyholder.

 

Investigation for Double Insurance frauds

Insurance companies find it difficult to conduct a thorough investigation of fraud. Conducting these investigations requires more effort and coordination, which can be very expensive and time-consuming.

 

Break in trust

Double Insurance fraud can break the trust between the insurance providers and policyholders. Trust plays a crucial role between the policyholder and the insurance provider. It can undermine the integrity of the insurance system to provide financial protection during unforeseen situations.

 

Legal Recourse

Insurance companies have the right to pursue legal recourse against individuals or entities involved in double insurance fraud. An individual or entity will have to undergo civil lawsuits to recover the damage caused by the respective individual or entity.

 

How Do Insurance Companies Identify Double Insurance Fraud?

Not everyone will wilfully purchase double insurance from insurance companies. In some cases, people might purchase double insurance by mistake. Insurance providers use certain techniques to identify double fraud and prevent significant losses.

 

Insurance providers check for policy details to identify if there is any overlap in coverage for the double insurance risk.

 

The claim history of the customers will be scrutinised by the insurance companies. The pattern will be detected to check for multiple claims.

 

Insurance providers tend to collaborate and share information about the customer information, claim history and suspicious activities. This will help to identify fraudulent claims and activities.

 

Insurance companies use data analytics and algorithms to detect patterns and anomalies, such as unusual claims or times, to identify fraud.
 

Can I Have Two Insurance Policies on Different Cars?

It is legal to purchase two different insurance policies for different cars. According to Indian Law, car insurance is mandatory. Shriram General Insurance provides car insurance that caters to individual needs. Comprehensive Car Insurance provides add-ons that will protect your car during unforeseen situations.

 

Shriram Car Insurance has a hassle-free digital platform, and it is easy to buy Car Insurance with a click. Additionally, claims can be initiated online, and our friendly customer service provides solutions for all your queries in the shortest possible time.

 

Conclusion

Double insurance may seem advantageous in the first instance, but paying premiums for two car insurance policies can be an added expense. Also, there is a risk of claims being rejected due to double insurance fraud by the insurance providers.

 

The primary goal of Car Insurance is to provide financial support during unforeseen events. If the claims are rejected by both insurance providers, it becomes a big financial burden for the policyholder. To avoid such risks, it is recommended to purchase comprehensive insurance with suitable add-ons from a single insurance provider. This will help you during tough times and provide financial support.

 

FAQs

1. Can different drivers buy insurance for the same vehicle?

No, only the driver-owner of the car can purchase Car Insurance for their vehicle.

 

2. Does having multiple Car Insurance policies increase the pay outs?

No, purchasing multiple car insurance policies will not increase the claim amount. Instead, it will only lead to added expenses.