Indemnity Flashcards
1
Q
What is the term Indemnity?
A
It is security and protection against loss or other financial burdens.
2
Q
What are the Principles of Indemnity?
A
It requires the insurer to restore the insured to the same financial position as he has been enjoying immediately before the loss.
The insured shall not be better off than before the loss. He may receive less than the loss as a result of policy conditions such as application of average, policy excess, or limits.
