I recently got our Honda City insured from Honda Assure (I chose National Insurance as the insurer) for INR ~12,000. I asked the agent if it is possible to give multiple insurance covers to a car. He nodded in agreement, assuring me however that I don't really need multiple covers. Then I asked him if one has the obligation to let each insurance company know that the vehicle has been insured from other insurance companies. He answered in negative, but appeared a bit surprised at my questions.
Anyway, his answers had me thinking. Five simultaneous comprehensive insurance covers (say from Bajaj Allianz, ICICI Lombard, National Insurance, Reliance General Insurance, and Tata AIG) would cumulatively value our Honda City at INR ~2,150,000, and I would've to shell out only INR ~60,000 to get these covers. Not to say that I'm thinking on these lines, but a theft of this car would - in case all five of the companies approve my claim - get me much more easy money than is the cost of even a new City.
This looks odd. If it were this easy, people would've been abusing this scheme for eons. Getting their car stolen and then making insurance claims to the multiple insurers to get undeserved money shouldn't be that easy, after all. I don't know if this is really possible, but if it is, people might already be misusing this scheme to make easy money.