Topic: Term Insurance - Payout on Death

Hi,

Request you to help me in a doubt.
I am of age 30 with annual income of Rs 10 Lacs.

I do hold 2 Pure Term Insurance Plan of Rs 10Lacs Each from LIC and Tata AIG. On my death, (in due good status of the both the insurance policies I hold) would I be paid a total of Rs 20 Lacs ( 10 Lacs each from two diffrent company) or would the loss be shared among both these companies and I would be paid only a sum of Rs 10 Lacs.

Kindly revert.

PS : Please quote IRDA Ruling in this front.

Thanks in advance.

Warm Regards,
Amar

You would be paid 20 lacs. Unlike your health insurance(where it's your expense), you get full payment for all the life insurance policies you hold.

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Both companies have separate liabilities. Therefore both will pay Rs. 10 Lac each i.e. total 20 Lacs.

Any sharing is applicable only in Non-Life insurance like Fire insurance of any asset.

Such decisions do not form part of IRDA. This is a provision under Insurance Act 1938.

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