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Concurrent Insurance

Reviewed by Vishnu | Updated on Sep 30, 2020

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What Is Concurrent Insurance?

Concurrent insurance is the type of insurance which includes more than two insurance policies, which cover for the same risks during the same period of time.

Concurrent insurance is commonly used when the insured party purchases additional policies on top of the primary policy. These additional policies offer the insured party with extra coverage. Insured parties generally purchase additional policies when they deem the primary policy to be unreliable to cover for the losses caused by a particular event.

Understanding Concurrent Insurance

Concurrent insurance policies could be the right choice for those individuals who assume that a specific event could pose a major risk, which may be inadequately covered by a single policy. In such cases, having one or more complementary policies can prove to be a wise course of action for the insured party.

What Is Concurrent Causation?

While concurrent insurance refers to holding two insurance policies at the same time, concurrent causation is the type of insurance related to property.

In the case of concurrent causation, if the damage is caused by more than one cause, where one of the causes is covered, but the other is not, then the loss would be covered.

For example, if a property is damaged by perils, such as flood and wind, the losses would be covered since it is not possible to exactly determine which of the two perils would have caused the damage.

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