Yes, there is nothing against multiple insurance policies paying for a single treatment. There are however certain conditions to be followed and which the insured should keep in mind. In fact, one must be aware of the fact that while taking health insurance, one is required to fill up proposal forms, wherein the insurer asks the insured to disclose any existing policy. The main purpose of asking this is because there is a contribution clause in most policies. The contribution clause means that for the same treatment if there is more than one policy, then for such a claim situation all the policies will contribute in equal proportion to the proportionate sum insured.
Also one needs to inform about the existing policy or policies to the other insurer(s) while buying a policy or making a claim simply because if you do not disclose this fact, they are violating the terms and conditions of the health insurance contract and in case of investigation this could be termed as mis-representation. Let us look at two possible scenarios.
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