Indemnity And Non-indemnity Insurance Flashcards
1
Q
Differentiate the key differences between indemnity and non-indemnity insurance
A
Indemnity insurance - The amount of damages claimed is directly proportional to the patrimonial loss or damage suffered, or the amount of the insurance where it is less than the loss suffered.
Non-indemnity insurance - When the loss suffered and the amount paid by the insurer is not necessarily proportionate.
2
Q
What is covered by indemnity and non-indemnity insurance ?
A
Indemnity insurance refers to a situation when the insured is covered against and compensated for patrimonial loss.
Non-indemnity refers to a situation where the insured is covered against non patrimonial loss
