Defining Indemnity Flashcards
1
Q
What is indemnity?
A
Putting the customer back in the same FINANCIAL posistion as before the loss
2
Q
Which case emphasised the importance of indemnity?
A
Castellain v Preston
3
Q
All general insurance policies are policies which indemnify - true or false?
A
False - benefit policies (providing compensation as a result of accidnent/sickness) do not indemnify a customer as there is no way of putting a price on the loss of a limb/sight
4
Q
What are benefit policies?
A
Policies which provide a fixed benefit in the event of sickness/accident.
5
Q
What are some examples of benefit policies?
A
Personal accident, sickness, critical illness, payment protection indemnity, hospital cash plans, permanent health.
