double indemnity

n. A clause in an insurance policy that provides for payment of double the face value of the contract in case of accidental death.

double indemnity

n (Insurance) US and Canadian (in life assurance policies) a clause providing for the payment of double the policy's face value in the event of the policyholder's accidental death

dou′ble indem′nity

n. a clause in an insurance policy providing for payment of twice the face value of the policy in the event of accidental death. [1920–25, Amer.]

Thesaurus

Noun

double indemnity - a clause in an insurance policy that provides for double the face value of the policy in the case of accidental deathclause, article - a separate section of a legal document (as a statute or contract or will)

Double Indemnity

A term of an insurance policy by which the insurance company promises to pay the insured or the beneficiary twice the amount of coverage if loss occurs due to a particular cause or set of circumstances.

Double indemnity clauses are found most often in life insurance policies. In the case of the accidental death of the insured, the insurance company will pay the beneficiary of the policy twice its face value. Such a provision is usually financed through the payment of higher premiums than those paid for a policy that entitles a beneficiary to recover only the face amount of the policy, regardless of how the insured died.

In cases where the cause of death is unclear, the insurance company need not pay the proceeds until the accidental nature of death is sufficiently established by a Preponderance of Evidence. A beneficiary of such a policy may sue an insurance company for breach of contract to enforce his or her right to the proceeds, whenever necessary.

double indemnity