Indemnity Flashcards
What are some other names for Indemnity according to Collins thesaurus? (Note: they do not covey the real meaning)
Guarantee, Protection, Reimbursement , Restitution, Security , Compensation
Who defined indemnity as the protection against Damage or loss?
Cambridge International Dictionary
The principle of indemnity posits that?
That an insured makes no profit from insurance claim
The principle of insurable interest relies heavily on? Explain
Financial Evaluation of loss as it is used to determine the amount of compensation the insured is entitled to
Types of policies where the strict principle of insurance does not apply?
1) Agreed Value Policy
2) Fire Insurance Policy
3) life and personal accident policy
Complete:
An Insurance may be for less than a complete indemnity _______
But it may not be more than it
The choice of indemnity is dependent on who?
The insurer
Formula for claim
Claim = loss x (sum insured/ market value)
What are the corollaries Or Result/consequences of the principle of indemnity
Subrogation and Contribution
______the transfer of legal rights of the insured to recover, to the Insurer.
Subrogation
If the insurer decides to pursue Subrogation, he can only recover to what extent??
To the extent with which he indemnified the insured
According to common law the right of subrogation arises when?
once the Insurers have admitted the claim and paid it/ once the insurer has indemnified the insured
________ refers to right of Insurers who have paid a loss to recover a proportionate amount from other Insurers who are also liable for the same loss
Contribution
