11.1 Introduction

Double insurance arises where a proposer enters into insurance contracts with two or more insurers in respect of the same insured subject matter, the same insurable interest, the same insured event, the same insured and for the same period of time, while the total sums insured exceed the insurable value of the subject matter.1 The Insurance Law allows a proposer to effect two or more policies. Nothing can prevent a person from effecting such multiple policies.2 This is like English law, under which an insured can take out as many insurance policies with many insurers as he pleases which, to some extent, cover the same interest, in the same subject matter, in respect of the same risk for the benefits of the same person.3 In practice, however, double insurance rarely happens in China; only a few cases have been reported on double insurance. This is unlike the situation in the UK where it is not uncommon for the same property to be insured under different policies.4