According to the principle of contribution, how can an insured claim if multiple policies cover the same risk?

The principle of contribution applies in scenarios where an insured has multiple insurance policies covering the same risk. This principle is designed to ensure that the insured does not profit from a loss by receiving more compensation than the actual loss incurred.

When claiming for a loss under multiple applicable policies, the correct approach is to claim proportionately from all policies involved. This means that each insurer contributes to the total claim based on the amount of coverage each provides relative to the total coverage. This method prevents the insured from receiving a windfall and ensures that their loss is fairly compensated without duplication.

By claiming proportionately, the insurers share the financial responsibility, reflecting the risk that each policy covers. This fairness in distribution upholds the integrity of the insurance system and aligns with the insured’s obligations under the policies. Therefore, the correct answer emphasizes the collaborative approach to claims under multiple policies, which is essential for maintaining equity in insurance transactions.