Insurance (Double Insured)

[aquadat0r]

Hi there,

I have been a Outsurance customer for many years and my OutBonus is due in 4 months time. In the mean time, I changed jobs and I had to move my vehicle and household contents insurance as my employer is pick these up as part of a group scheme.

I'm have cancelled my vehichles with outsurance, but unfortuantly I cannot cancel my household contents with then otherwise I would lose around R8000 in OutBonus.

Does anyone know what the legal position is about being insured for household contents by two insurance companies?

This is a extract of my one clause in my new insurance's T&C's

3. CONTRIBUTION
If at the time any claim arises under this Policy there is any other existing insurance covering the same loss or damage
SASRIA shall not be liable to pay or contribute more than its ratable share of any loss or damage.

[McT]

The usual stand of insurance companies is that they will contribute a proportional amount to the claim. If you are insured with two companies, each will contribute 50%. If three, then it would be 33%.

[Freshy-ZN]

The golden rule with insurance is that it isnt meant to be used to gain but to put you in the position you were in before the event. Thus having two policies would be seen as a gain if they both paid out the full amount. As mentioned above they would pay only part each but I dont see you paying each half....

[aquadat0r]

Thanks, my one premium is only R 180 p/m. So R 720 in exchange for R 8000 is still a better deal than losing the entire R8000. I'll wait it out before canceling the one.