Indemnity Flashcards
Is indemnity an expressed, implied or written term
Implied
Define indemnity
To put somebody back in the same place as they were before the loss had ever occurred (less any excess). Nobody can profit from the loss.
Who does indemnity protect?
The insured and insurer
What are the insurers obligations to the insured under indemnity?
They must compensate the insured to put them back to the same position as they were at the time of the loss
First-party claim
Damage happens to your property so you claim off your insurance
Third-party claim
You cause harm and as a result, somebody else sues you and an insurer pays out.
Who is indemnity between
Insured and the insurer only
Does insurance payout for pain and suffering?
no
What policies do indemnity not apply to
Life and health
What case sets precedent that an insured can an insured cant profit from a loss
Castillion v Preston
What statute defines indemnity
MIA
Where does indemnity apply
Policies with an agreed value
Liability policies
Where does indemnity not apply
Life and health insurance
Where the real and actual value of the goods cant be recovered (no emotional value)
Limits of indemnity
Max the insurer will pay out, not the sum received
Sum insured
The rebuild value/replacement value of the property as specified by the insured in the contract.
