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difference between double insurance and reinsurance

DOUBLE INSURANCE IS TO ENSURE YOUR THING TWO TIME . WE DOUBLE INSURE ONLY THOSE THINGS WHICH INVOLVES GREATER RISK LIKE INDUSTRIES USING OR TREATING PETROL.

REINSURANCE IS THAT WHEN YOUR INSURANCE EXPIRED AND YOU INSURED THEM AGAIN

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Here is the difference between double insurance and reinsurance.

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Re-insurance:-
It is a contract between two insurance company. It happens when an insurance company feels that it cannot bear entire risk also. It transfer a part of rest to another insurance company.

Double insurance:-
When more than one insurance policy is taken to cover same risk. It is profitable in case of life insurance as insured can claim full policy money under all policies. In case of fire or marine insurance insured will not get more than the amount of his loss.

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Re-insurance :-1) It is related with the insurer .
2)In this case the number of original insurer is restricted to one.
3)The original insurer cannot claim compensation from the re-insurance .
4)It is beneficial for insurance companies.

Double insurance :-1)It is related with the original insurer.
2)In this case the same risk is insured with more than one insurers.
3)The original insurer can claim the compensation from all the insurers but not more than the amount of actual loss.
4)It is beneficial for the gerneral public in case of life insurance only.
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