Insurer paying only “its share” because you have two policies? Check who really contributes.
Holding two policies does not halve each insurer's obligation. Health-insurance rules let you choose which insurer to claim from, and fixed-benefit covers pay in full regardless. Here's how contribution actually works.
Reviewed by the BimaHaq Insurance Grievance Desk — BimaHaq's in-house insurance-grievance team — specialists in IRDAI grievance redressal, the Insurance Ombudsman process, and policyholder rights in India. · Last reviewed 2026-07-11
Contribution applies only between indemnity policies covering the same interest and the same risk — and even there, IRDAI's health-insurance norms give you the right to choose which insurer to claim from: the chosen insurer must settle the claim up to its own sum insured without forcing an apportionment on you, and contribution between insurers only arises where the claim exceeds a single policy's limit. A fixed-benefit policy — a hospital-cash plan, a benefit-based critical-illness cover, personal accident, life — pays its promised amount in full regardless of any other insurance you hold.
Why insurers reject on this ground
You disclosed a second policy, and the insurer invoked the contribution condition to pay only a rateable share — or told you to recover part of the claim from the other insurer first.
When you can challenge it
First classify each policy: indemnity (reimburses actual expenses) or fixed benefit (pays a defined amount on a defined event). Contribution has no application to fixed-benefit covers — an insurer scaling down a benefit payout because 'you have other insurance' is simply wrong. Between two indemnity health policies, IRDAI's norms let you pick the insurer to claim against, and that insurer must pay up to its sum insured; it cannot unilaterally deduct a 'contribution share' where its own limit covers the claim. Where the claim genuinely exceeds one policy's limit, you may claim the balance from the second insurer — sequencing of your choice. Put the policy schedules side by side and hold each insurer to its own promise.
How to fight this rejection
Classify both policies in writing
From each policy schedule, record whether it is an indemnity cover or a fixed-benefit cover, its sum insured, and its insurer. This single table usually decides the dispute.
Assert your choice of insurer
For indemnity health policies, write to the insurer you chose stating that under IRDAI's norms you elect to claim under this policy, and that it must settle up to its sum insured without forcing contribution on you.
Claim any balance from the second insurer
If the loss exceeds the first policy's limit, lodge the balance with the second insurer with the first insurer's settlement letter — the second policy answers for the amount the first did not cover.
Raise a written grievance with the insurer's GRO
Send a dated grievance to the insurer's Grievance Redressal Officer setting out why the rejection is wrong. The insurer must acknowledge it immediately and resolve it within 14 days.
Escalate to IRDAI on Bima Bharosa
If it isn't resolved in time or the reply is unsatisfactory, register the complaint on IRDAI's Bima Bharosa portal.
Take it to the Insurance Ombudsman
Free, binding on the insurer, and open to claims up to ₹50 lakh — file within one year of the insurer's rejection or final reply.
Common questions
I have two health-insurance policies. Which one pays my claim?
You choose. Under IRDAI's health-insurance norms, the policyholder selects the insurer to claim from, and that insurer must settle the claim up to its own sum insured. If the claim exceeds that policy's limit, you can claim the balance from the second insurer. The insurers cannot force a rateable split on you where one policy's limit covers the claim.
Can an insurer reduce my personal-accident or hospital-cash payout because I have other policies?
No. Fixed-benefit policies — personal accident, hospital cash, benefit-based critical illness, life insurance — pay their promised amount in full on the insured event, regardless of any other cover you hold. Contribution is an indemnity concept and has no application to benefit payouts.
What is the contribution clause?
It is the principle that when two indemnity policies cover the same interest against the same risk, the insurers share the loss between themselves so the insured does not recover more than the actual loss. It protects against double recovery of the same expense — it does not let an insurer pay less than the actual loss while a policy limit remains available.
See the full escalation ladder for a rejected claim, or use a free complaint-letter template.
This guide is general information about the insurance-grievance process in India, not legal advice, and figures (timelines, monetary limits, jurisdiction) can change — verify against the official sources linked above before you rely on them.