Being in the middle of swapping cars and seeing the lengths that the lady at the call centre for the complimentary insurance (5 days) went to to ensure that my new vehicle wasn't 'double Insured' (eg through my normal policy and theirs at the same time) I wondered how this would affect me with a bike. To explain further - were I to lend a bike (in my name, insured by me, no named riders) to someone who has no policy and they then took out said policy in their name to cover their use would this be legit'? Would the bike be doubly insured or not, as both policies referring to it would be in different names, so only one of us could crash it at once?? thanks people!
I could be wrong but with him taking out insurance under his name on your bike would be ok as you are not riding it, if he was involved in an accident then it would be his insurance not yours that was claimed against? Could also be a can of worms best not opened !
It's not fraud and is perfectly legal Dual insurance is where the same risk is insured by two overlapping but independent insurance policies. It is legal to obtain double insurance, and the insured can make claim to both insurers in the event of a loss because both are liable under their respective polices. The insured, however, cannot profit (recover more than the loss suffered) from this arrangement because the insurers are law bound only to share the actual loss in the same proportion they share the total premium.
