Contribution by Limits

Proportional apportionment of an insured loss by two or more Insurers in the ratio of their individual Policy limits to the total of all Policy limits. For example, if Insurer A has a Rs. 2,00,000 Policy for a particular loss, and Insurer B has a Rs. 3,00,000 Policy for the same loss (a total of Rs. 5,00,000 coverage), Insurer A pays 2/5 of the loss, and Insurer B pays 3/5 of that loss, with neither paying more than the amount of its Policy.

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