Can purchasing multiple life insurance policies result in duplicate compensation?
Compiled from: Shandong High Court
In real life, some drivers and passengers worry that their personal insurance coverage may be insufficient to handle risks, so they take out duplicate policies with multiple insurance companies. So, if a driver or passenger suffers an accidental injury, can they receive duplicate compensation?
Case Review
Zhou, a driver of vehicle Lu Q2xxxx, had purchased driver and passenger accident insurance for the vehicle from both Insurance Company A and Insurance Company B. On June 21, 2020, while loading cargo for the vehicle at a steel plant in Jiaozhou City, Zhou accidentally fell from the vehicle and was injured. After the incident, Zhou repeatedly communicated with Insurance Company A about the claim, but Insurance Company A refused to pay, citing Zhou's duplicate insurance coverage. Zhou then filed a lawsuit with the court.
The court held that although the vehicle Lu Q2xxxx was insured with driver and passenger accident insurance by both Insurance Company A and Insurance Company B, China's Insurance Law does not restrict duplicate coverage for life insurance, nor does it apply the principle of loss compensation. Since Insurance Company B had already paid compensation, it did not increase the burden on Insurance Company A. Therefore, Insurance Company A's argument that the duplicate policy was invalid or that it should share Zhou's losses with Insurance Company B was not valid. The court ruled that Insurance Company A must compensate the plaintiff Zhou for his losses.
Insurance Law of the People's Republic of China
Article 30
Where a contract of insurance is concluded using standard clauses provided by the insurer, and a dispute arises between the insurer and the insured, the applicant, or the beneficiary regarding the contract clauses, the clauses shall be interpreted in accordance with their ordinary meaning. If there are two or more interpretations of a contract clause, the people's court or an arbitration institution shall adopt an interpretation favorable to the insured and the beneficiary.
Interpretation (II) of the Supreme People's Court on Several Issues Concerning the Application of the Insurance Law of the People's Republic of China
Article 11
At the time of concluding an insurance contract, if the insurer, on the insurance application form, insurance policy, or other insurance documents, indicates the clauses exempting the insurer from liability in the insurance contract using text, fonts, symbols, or other prominent marks sufficient to draw the applicant's attention, the people's court shall determine that the insurer has fulfilled the duty of notification as stipulated in the second paragraph of Article 17 of the Insurance Law. If the insurer provides an explanation of the concepts, content, and legal consequences of the clauses exempting the insurer from liability in the insurance contract to the applicant in written or oral form in a manner understandable to an ordinary person, the people's court shall determine that the insurer has fulfilled the duty of clear explanation as stipulated in the second paragraph of Article 17 of the Insurance Law.
[4] Author's Opinion
As in this case, if multiple accident insurance policies for drivers and passengers are purchased, whether duplicate claims can be made after an accident should be determined based on the specific circumstances. Currently, there are two types of insurance claims: one is the benefit type, and the other is the reimbursement type. The personal insurance in this case is the benefit type, meaning that whether the claim conditions stipulated in the contract are met is the criterion. As long as the contract conditions are met, the insurer will pay the insurance benefits according to the agreed sum insured. Among these, accidental death, accidental disability, and hospitalization allowance are benefit-type compensation items, and in the case of purchasing multiple personal insurance policies, duplicate compensation is allowed. Accidental medical insurance, however, is a reimbursement-type compensation item, where the applicant needs to submit medical expense receipts to apply for compensation, following the principle of loss compensation. The final compensation obtained cannot exceed the actual medical expenses incurred, and duplicate claims are not allowed.
Thus, it can be seen that even for the same accident, compensation results may differ due to different insurance types purchased beforehand. Therefore, when buying insurance products, one must do thorough research and understand clearly to avoid unnecessary disputes. The above is an introduction to relevant knowledge. Have you understood it? If you have other questions, you can call or visit the Guangdong Zhiming Law Firm website.http://www.zhiminglawyer.com/Contact Guangdong Zhiming lawyers to resolve your legal difficulties as soon as possible.
