CMFAS PGI Personal Accident Insurance question: separate personal accident policies and suffers permanent total disablement

CMFAS PGIPersonal Accident Insurance

David holds three separate personal accident policies and suffers permanent total disablement in one accident. What is the position on the capital benefits?

A He may claim only under the earliest policy, as later ones are void
B The three insurers must share one capital benefit rateably under contribution
C He must surrender two of the policies before any one claim is paid
D He may in principle claim the agreed capital benefit under each policy

Show the answer and explanation

Answer: D. He may in principle claim the agreed capital benefit under each policy

Because capital benefits are fixed agreed sums not governed by subrogation or strict contribution, David may in principle recover the agreed benefit under each of his PA policies for the same disablement.

Common mistake

Applying indemnity contribution to prevent recovery under more than one PA policy.

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CMFAS PGI Personal Accident Insurance question: separate personal accident policies and suffers permanent total disablement

Answer: D. He may in principle claim the agreed capital benefit under each policy

Common mistake

Related CMFAS PGI questions

CMFAS PGI Personal Accident Insurance question: separate personal accident policies and suffers permanent total disablement

Answer: D. He may in principle claim the agreed capital benefit under each policy

Common mistake

Related CMFAS PGI questions