Double Insurance - How Would It Work?

[peanut]

Does anyone know what happens if you have insurance with two different providers?

I've had basic insurance for a few years now, paying for it myself. Now I have a new job and part of the benefits is an insurance package with a different company. The package is slightly better than the one I already have.

Now, since my existing insurance is quite cheap (no OPD cover), I was thinking of keeping it for the time being, since I've been with them for a while and you never know how well the job will go. However, I don't know if this offers any advantages? If, say, I end up in hospital, can I use both, in order to cover a higher cost?

Any thoughts appreciated, thanks.

[jazzbo]

You can keep 17 different policies if you want, but if there is ever a reason to file a claim, you can only collect on one or else fraud provisions will apply.

[Geekfreaklover]

You can keep 17 different policies if you want, but if there is ever a reason to file a claim, you can only collect on one or else fraud provisions will apply.

Looking at it from an insurers point of view. If the claimant has two policies but only collects on one and the insurer is aware that there is another policy covering the loss then they would look to seek subrogation (money back) from the other policy/ insurer. Or just split the claim 50/50.

So if there were 17 different coverages - they should split the claim between the 17 insurers in accordance with the various limits / conditions.

As you say, if you try and collect on all 17 for the full amount then you will be making fradulant claims.

Edited August 16, 2009 by Geekfreaklover

[jazzbo]

Kuhn GFL -- I was using the number 17 as an attempt at levity. You are right re: subrogation, etc., IF the various insurers know about each other as in stacked coverage. In the OP I assumed the insurers do NOT know of each other as the OP obtained one policy privately and one is provided for by virtue of employment. I don't know about the group policy the insurer provides but most applications ask if there is any other insurance in force. Any attempt at multiple claims submission would, however, still be considered fraud.

[JoePai]

Excuse me chaps, but what do you think the hospital will say when you ask them for 17 (??) original copies of the Doctors reports/Invoices for submission to all your medical insurance companies ?

[Geekfreaklover]

Excuse me chaps, but what do you think the hospital will say when you ask them for 17 (??) original copies of the Doctors reports/Invoices for submission to all your medical insurance companies ?

17 was just a hypothetical number used and wouldn't ever happen in practice for a personal lines medical claim.

But two policies may overlap and both provide coverage for a persoanl medical claim.

Most policies would ask whether the policyholder already has insurance in the proposal / application form. But not all, especially if it is company insurance.

Most people would just claim under the company policy and let the company premium rise, rather than use their own personal cover. But if you are asked at any stage if you have other cover than it is due diligence to declare that you do.

But I think what the OP was getting at was say for example he had a 1M claim and both policies have a limit of 500k can he use both their limits to get to the 1m?

I think the answer is no. For such a large claim both the insurers would be in contact with the hospital and therefore know that each other exist.

I think the insurers would argue that they only pay 250k each to make up the 500k limit on their respective policies.

Edited August 16, 2009 by Geekfreaklover

[jazzbo]

OK, tag you're it. I think the important point here is not regards claims. The OP (K. Peanut) is concerned that he keep his private policy in case he is let go from the job and loses the company policy coverage. It might be hard, at that point, to re-apply for the individual policy for any number of reasons. My suggestion (and it is only my opinion) is that he keep both policies but, should there be a claim while the company policy is in force, he submit the claim only to that policy. He should only mention the individual policy if the company policy asks in the course of the claim filing 'is there any other insurance in force'.

[Geekfreaklover]

OK, tag you're it. I think the important point here is not regards claims. The OP (K. Peanut) is concerned that he keep his private policy in case he is let go from the job and loses the company policy coverage. It might be hard, at that point, to re-apply for the individual policy for any number of reasons. My suggestion (and it is only my opinion) is that he keep both policies but, should there be a claim while the company policy is in force, he submit the claim only to that policy. He should only mention the individual policy if the company policy asks in the course of the claim filing 'is there any other insurance in force'.

[peanut]

Thank you everyone. I understand.. a bit more. One useful piece of advice there is that I should always use the policy provided by the employer, I hadn't thought of that.

In no way was I thinking of lying to either of the companies or make a double claim for the same expense. I was just wondering if, for example, I'm in the hospital and my room costs 3,000 baht per night. My main insurance then (the one provided by my company) pays up to 2,000. Can I use the other one to cover the rest? I guess the answer is no if I understand you correctly.

[peanut]

More questions come now that I read through your replies again!

Is it fraud to have two policies at the same time?

I didn't think of "hiding" one of them at all... Should I?? In what way is it better if they know each other and in what way if they don't?

When I use one of them do I need to declare the other one too, is it fraud if I don't?

Do I just declare both and let the hospital sort it out?

[peanut]

Oh, and no, when I signed the application form for my employer's policy, they didn't ask if I already have insurance.

[Geekfreaklover]

Thank you everyone. I understand.. a bit more. One useful piece of advice there is that I should always use the policy provided by the employer, I hadn't thought of that.

In no way was I thinking of lying to either of the companies or make a double claim for the same expense. I was just wondering if, for example, I'm in the hospital and my room costs 3,000 baht per night. My main insurance then (the one provided by my company) pays up to 2,000. Can I use the other one to cover the rest? I guess the answer is no if I understand you correctly.

It's a good question and one that can only be answered by reading your policy wordings.

I think if both policies had the same limit they would share it. But if one policy had a much higher limit it may be able to 'kick in' as an excess policy once the first policy is exhausted if the wording terms allow it.

Ask for a copy of your company policy and read the claims procedure and look for the words 'exisiting insurance'.

Sorry I can't help more. I haven't delt much with medical insurance in the past.