Insurance Indemnity
/ɪnˈʃʊərəns ɪnˈdɛm.nɪ.ti/
Definitions
- (n.) Compensation paid by an insurer to indemnify the insured for loss or damage covered under an insurance policy.
The insurance indemnity covered the cost of repairing the damaged property.
- (n.) The principle whereby the insurer restores the insured to the financial position held before the loss, without allowing for profit.
Insurance indemnity prevents the insured from profiting due to a claim.
Forms
- insurance indemnity
Related terms
See also
Commentary
Insurance indemnity emphasizes the principle of reimbursement or restoration to pre-loss financial status rather than profit; precise drafting should clarify coverage limits and exclusions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.