Clearly a loophole that's been exploited, upon finding out during an audit there are chances the policy might get cancelled & penalty maybe levied.

Such practices are best advices against in interest of your own long term protection.

Hi Senthil

Though this is possible, this is not legal, and if the insurance company finds out of the double claim, they may reject the policy and as suggested by Pankaj ji, penalty will be levied

Insurance is meant to cover your financial losses only and not to make profits out of it

Thanks