Question:
"A" bought two life insurance policies, one from XYZ company and second from WXY company of a sum of ₹20,00,000 and ₹30,00,000. He met an accident and unfortunately died. The legal representatives of the insured are entitled to get:
"A" bought two life insurance policies, one from XYZ company and second from WXY company of a sum of ₹20,00,000 and ₹30,00,000. He met an accident and unfortunately died. The legal representatives of the insured are entitled to get:
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Logic Tip: Multiple life insurance policies can all be claimed because life insurance is not based on indemnity.
Updated On: May 29, 2026
- ₹20,00,000 only
- ₹30,00,000 only
- ₹50,00,000 as in case of life insurance the concept of contribution is not applied
- ₹10,00,000 only
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The Correct Option is C
Solution and Explanation
Step 1:
Life insurance is not a contract of indemnity.
Step 2:
The principle of contribution applies mainly to indemnity insurance like fire or marine insurance. It does not apply to life insurance.
Step 3:
Total insured amount: \[ 20,00,000 + 30,00,000 \] \[ = 50,00,000 \]
Step 4:
Therefore, legal representatives will receive: \[ \boxed{₹50,00,000} \] Hence, the correct answer is: \[ \boxed{\text{(3)}} \]
Life insurance is not a contract of indemnity.
Step 2:
The principle of contribution applies mainly to indemnity insurance like fire or marine insurance. It does not apply to life insurance.
Step 3:
Total insured amount: \[ 20,00,000 + 30,00,000 \] \[ = 50,00,000 \]
Step 4:
Therefore, legal representatives will receive: \[ \boxed{₹50,00,000} \] Hence, the correct answer is: \[ \boxed{\text{(3)}} \]
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