A clause that is frequently seen in accident and life insurance plans is known as double indemnity. In the event that the policyholder passes away from accidental causes, double indemnity life insurance mandates the insurance company to pay up to double the policy’s value.
This is intended to aid families that are left to deal with the sudden, unintentional death of a loved one by providing financial protection. For further details, see a qualified wrongful death attorney.
What is Double Indemnity?
Although many people may not be familiar with it, the double indemnity meaning has been in use for many years. The context of an insurance claim is where it is most frequently used. Depending on the kind of insurance being discussed, the term “double indemnity” might have several meanings.
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What is Double Indemnity Insurance?
Contrary to popular belief, very few deaths are genuinely unintentional. In actuality, accidents only account for 5% of fatalities in the US. Insurance companies hardly ever have to pay double indemnity due to the minimal probability of an accidental death. However, even if they do, they might still make an effort to refute your allegation.
Although there are numerous legitimate reasons to deny coverage, this does not mean that your claim must be outright rejected. Insurance providers will do whatever it takes to demonstrate that the death in question wasn’t truly an accident. It is comparable to how insurance will seek to assign fault in order to dismiss a vehicle accident claim.
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In many cases, double indemnity policies play a crucial role in wrongful death lawsuits. The amount of money granted to beneficiaries may rise dramatically as a result. However, this could be problematic on its own because it could influence how the insurance provider compensates survivors for losses.
Therefore, in addition to issues with establishing that the death was unintentional, there may also be issues with how the money is distributed.
What is a Double Indemnity Clause?
One might hear it referred to as a “clause” when asking about the double indemnity meaning.
The actual clause in a life insurance policy is called a double indemnity clause. A double indemnity clause in an insurance policy requires the insurer to pay twice, often even three times, the sum specified in the policy in the event of an accidental death.
A beneficiary of a double indemnity policy is entitled to sue the insurance provider for a variety of reasons. This can be the case if the insurance provider violates the terms of the policy (see “Breach of Contract: Insurance Reimbursements”) or neglects to compensate beneficiaries and survivors in a timely manner.
It can also be necessary if the supplier attempts to alter the terms of the contract without consent or prior notice.
On the other hand, wrongful death claims may call for legal representation in order to defend the inherited rights against challenges from other beneficiaries. This typically occurs when an insured individual passes away suddenly and without leaving a will or other valid testament.
It is quite helpful in both situations to have an insurance and contract claims lawyer on your side to make sure that you and your loved ones receive what is owed to you.
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What Situations Constitute an Accidental Death?
Insurance providers have stringent criteria for what counts as an accidental death. These frequently involve violent crimes or mishaps that may have been avoided if someone hadn’t been careless. Regular qualifying activities include:
- slipping and falling incidents
- Drowning
- Choking
- car crashes
- Accidents that occur at work
- medical negligence
- Homicide or murder
- exposure to poisonous substances
- faulty equipment or goods
It is terrible when a loved one passes away, and it is even more upsetting when it happens as a result of someone else’s carelessness or wrongdoing.
Reasons for Denying a Double Indemnity Claim
A double indemnity claim could be rejected by an insurance company for a number of different reasons. The following are a few examples of various causes of death that often invalidate this insurance claim:
- a current medical problem
- deaths brought on by carelessness
- Taking too much of a substance (if the medication was prescribed but the dose was given incorrectly by the doctor, that would be an exception)
- Suicide
- extreme sports, such as skydiving
- A murder that the beneficiary committed
The insurance companies, and their adjusters as well, understand that paying out twice as much on a claim is something they want to avoid in order to maximize the payout. They can therefore make an effort to refute the double indemnity provision of your policy by claiming that a death was not unavoidable.
How Claims Are Handled
Despite the fact that it can feel like you have plenty of time to begin the insurance claim procedure following the passing of a loved one, insurance companies normally only pay claims that are submitted within 365 days of the incident that caused the death. To back up the allegation, they will want certain documents, such as but not limited to:
- This death record
- the police report
- any testimony from witnesses
- Clinical information
- reports on toxicology
- the autopsy report
The compensation will be lowered by insurance firms in an effort to preserve their own profits. Because so many of these claims are actually authorized under a double indemnity policy, many insurance firms anticipate making money from them.
Because of this, it is advisable to engage with a knowledgeable personal injury lawyer who can assist in establishing fault and fighting for your double insurance indemnity claim.
Why Do You Need a Double Indemnity Insurance Attorney?
It’s essential that anyone requesting double indemnity for the death of a loved one has a legal expert on their side. The significance of the phrase “double indemnity” should be thoroughly understood by your attorney.
They should be ready to fight back if insurance companies try to reject claims for unintentional deaths. Your chances of collecting your double indemnity compensation might be considerably increased by having an experienced legal team on your side.
You need skilled Houston double indemnity attorneys if a loved one passes away accidentally. We at Reich & Binstock are familiar with double indemnity agreements and how to enforce them.
Contact Reich & Binstock right now if you require legal counsel or representation or if you only want to find out if you have a case. Call us at 713-622-7271 or send an online message through our website.
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