Double indemnity is related to non-Australian life insurance policies, and is not to be confused with double jeopardy, which does exist in Australia. Read more about double jeopardy here.

Double indemnity is an insurance policy whereby the insurance company promises to pay the insured person (or their beneficiary) twice the sum insured if death or loss occurs due to a particular set of circumstances.

Double indemnity is typically found in life insurance policies, where if the death is accidental, the policy pays twice the agreed value. Double indemnity typically comes with higher premiums, compared to a regular policy that has lower premiums and the face value is paid no matter how the person died.

If the cause of death is unclear, the insurance company doesn’t have to pay until the accidental death is confirmed.

     Why does this form of insurance exist?
The odds of dying in an accident – as opposed to illness – are quite low, in fact being less than five per cent of all deaths. Death may occur to due murder, suicide, or illness, and may alter premiums. It can work well for those who have a higher risk of dying in an accident.

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