CMFAS PGI Personal Accident Insurance question: subrogation and strict contribution

CMFAS PGIPersonal Accident Insurance

Because subrogation and strict contribution do not apply to the capital benefits, what is a policyholder able to do?

A Recover medical costs in full under each policy, beyond the actual bills incurred
B Hold several PA policies and claim the agreed benefit under each for one injury
C Require the insurer to raise the capital sum after an accident has occurred
D Claim a larger benefit where the accident caused a greater loss of earnings

Show the answer and explanation

Answer: B. Hold several PA policies and claim the agreed benefit under each for one injury

Since the capital benefits are fixed sums, subrogation and strict contribution do not apply, so an insured may hold multiple PA policies and claim the agreed sum under each for the same accidental death or disablement.

Common mistake

Applying indemnity's contribution rule (preventing multiple recovery) to PA capital benefits.

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CMFAS PGI Personal Accident Insurance question: subrogation and strict contribution

Answer: B. Hold several PA policies and claim the agreed benefit under each for one injury

Common mistake

Related CMFAS PGI questions

CMFAS PGI Personal Accident Insurance question: subrogation and strict contribution

Answer: B. Hold several PA policies and claim the agreed benefit under each for one injury

Common mistake

Related CMFAS PGI questions