Combined single limits
Combined single limits defines maximum payment from insurance policy for one claim. If the combined single limit is defined, and claim is related to several injuries, the overall payment won't be counted based on number of injuries, but based on the limit. For example, insurance policy can state that combined single limit is 1000 dollars for a claim. In that case policyholder won't get more than 1000 dollars for his/her claim.
The limit has advantage for policyholders, as it doesn't set limits for distinct types of problems. In case of car crash, when car is seriously damaged, but passengers aren't injured, all the sum of compensations can go to repairing the car. Without combined limits only some part of insurance payment could be used, and other part (related to injuries) would be left untouched.
- Bakx, P., Schut, F., & van Doorslaer, E. (2015). Can universal access and competition in long-term care insurance be combined?. International journal of health economics and management, 15(2), 185-213.
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