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She can die from too much insulin and then you will be dealing with the police with a dead body to answer for.
Where are her children? Someone needs to intervene if you are worried about dealing with the police about taking her medicine bag so she can not kill herself.
How come she accepts your support to set out her morning meds, but then undertakes the same routine herself in the afternoons and declines to hand control of The Bag to you?
Is she falling asleep after lunch, waking to think it is morning, and going through her habitual routine, something like that?
You need to get to the bottom of what's going on when she takes the second/over dose.
And you need to be firm about Safe Handling and Administration of Medications. If you were employed in this role, you would have more regulations to follow than you can shake a stick at. So go about it in a business-like way and tell your grandmother you're either doing it properly or you won't do it at all.
Isnt she running out of meds before it’s time to refill? What then?
i can see why you are concerned. Who is her medical POA? Time to take action. Call her doctor tomorrow. Don’t let this continue without professional advice.