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LSDefine
Simple English definitions for legal terms
double indemnity
Read a random definition: Mechanic's Lien
A quick definition of double indemnity:
Double indemnity is a term used in insurance contracts. It means that if a person dies accidentally, the insurance company will pay twice the amount of the policy. For example, if a person has a policy for $100,000 and dies in an accident, the insurance company will pay $200,000 to the beneficiary. This is called double indemnity.
It is important to note that double indemnity is only applicable in certain circumstances, such as accidental death. It is not a standard feature in all insurance policies.
A more thorough explanation:
Definition: Double indemnity refers to the payment of twice the basic benefit in the event of a specified loss, especially in an insurance contract requiring the insurer to pay twice the policy's face amount in the case of accidental death.
Example: John has a life insurance policy with a double indemnity clause. If he dies in an accident, his beneficiary will receive twice the amount of the policy's face value. For instance, if the policy's face value is $100,000, the beneficiary will receive $200,000 in case of accidental death.
This example illustrates how double indemnity works in an insurance contract. It provides an extra layer of protection to the policyholder's beneficiaries in case of accidental death, ensuring that they receive a higher payout than the policy's face value.