Legal Definitions - double indemnity

Definition: Double indemnity refers to the payment of twice the basic benefit in the event of a specified loss, especially in an insurance contract requiring the insurer to pay twice the policy's face amount in the case of accidental death.

Example: John has a life insurance policy with a double indemnity clause. If he dies in an accident, his beneficiary will receive twice the amount of the policy's face value. For instance, if the policy's face value is $100,000, the beneficiary will receive $200,000 in case of accidental death.

This example illustrates how double indemnity works in an insurance contract. It provides an extra layer of protection to the policyholder's beneficiaries in case of accidental death, ensuring that they receive a higher payout than the policy's face value.