Defining Indemnity Flashcards

1
Q

What is indemnity?

A

Putting the customer back in the same FINANCIAL posistion as before the loss

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2
Q

Which case emphasised the importance of indemnity?

A

Castellain v Preston

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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

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4
Q

What are benefit policies?

A

Policies which provide a fixed benefit in the event of sickness/accident.

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5
Q

What are some examples of benefit policies?

A

Personal accident, sickness, critical illness, payment protection indemnity, hospital cash plans, permanent health.

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