Indemnity is the promise of a person or organization to reimburse another for a loss or expense. It is commonly used in insurance policies, where it refers to coverage for expenses that cannot be recovered from third parties.
Principle of indemnity :
The principle of indemnity is the legal principle to be liable. It means that if a person was not involved in causing damage to another, they should not be held responsible.
One must have caused the complainant’s loss.
The principle of indemnity does not apply to life insurance because life insurance is an investment where the money paid by the policyholder is invested.
The return from it guarantees a certain amount of coverage for the policyholder’s family in case of death.
The funds invested by the policyholder are used for paying off premiums and interest rates on loans taken out by banks.
Therefore, it cannot be said that they caused any damage to anyone else by making this investment.
The policyholder does not get back their money after paying off their premiums.
Final answer :
Indemnity :
Indemnity is the promise of a person or organization to reimburse another for a loss or expense.
It is commonly used in insurance policies, where it refers to coverage for expenses that cannot be recovered from third parties.
Principle of indemnity :
The principle of indemnity is the legal principle to be liable. It means that if a person was not involved in causing damage to another, they should not be held responsible.
One must have caused the complainant’s loss.
The principle of indemnity does not apply to life insurance because life insurance is an investment where the money paid by the policyholder is invested.
The return from it guarantees a certain amount of coverage for the policyholder’s family in case of death.
The funds invested by the policyholder are used for paying off premiums and interest rates on loans taken out by banks.
Therefore, it cannot be said that they caused any damage to anyone else by making this investment.
The policyholder does not get back their money after paying off their premiums.