If a freight company lost my shipment and I was paid for my claim but my possessions were later recovered, do I have to pay the money back?

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If a freight company lost my shipment and I was paid for my claim but my possessions were later recovered, do I have to pay the money back?

The insurance company paid the money to compensate. After 2 month shipment found. Insurance company is asking either the money back or the items I purchased already. During claim process I have not been informed that I need to pay the money back if they find the shipment. Do they have right to ask the money back?

Asked on September 4, 2014 under Insurance Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Yes, they can get the money back. The law does not permit double recovery: if you receive compensation for items and the items are later recovered, you have to return the money. (You have a right to be made whole--to not come out behind--but not to receive a windfall--or come out ahead.) If you do not return the money, you could be sued for it.


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