Definition of double indemnity
Noun
double indemnity (uncountable)
- (law) A clause in an insurance policy in which the insurance company agrees to pay out double the normal coverage in certain specified circumstances, most often in case of accidental death
Further reading
Double indemnity is a clause or provision in a life insurance or accident policy whereby the company agrees to pay the stated multiple (i.e. double) of the face amount in the contract in cases of death caused by accidental means. This includes murder by a person other than, and not in collusion with, the beneficiary of the insurance policy, and most accidental deaths. It excludes suicide, and deaths caused by the insured person's own gross negligence, as well as natural causes, such as cancer or heart disease.
In 2006, 5.01% of all deaths in the United States were declared accidental. For this reason, double-indemnity clauses are usually relatively cheap and often aggressively marketed, especially to people over 45. Children and people in dangerous jobs, such as heavy construction, are the exceptions.
References:
- Wiktionary. Published under the Creative Commons Attribution/Share-Alike License.
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