Mataracy
VIP Contributor
What is Indemnity?
Indemnity can be described or define as a compensation for a loss or injury sustained. This principle applies mainly to all contracts of property and pecuniary insurance.
The time an insurer or underwriter is called upon to honour its obligation under an insurance contract is at the time of a loss or when the insured suffers a loss or damage or experiences a misfortune. The intention of the insured after paying the premium is to be placed in the position he was immediately before a loss subject to the terms and conditions of the policy.
Indemnity could be viewed to be a mechanism by which insured to the same pecuniary position after the loss as he enjoyed immediately before it.
By the principle of Lord Justice Breath, in the case of Castellan V. Preston held that indemnity was the controlling principle of insurance . It is placing of the insured in the same financial position he was immediately before a loss.
Indemnity can be described or define as a compensation for a loss or injury sustained. This principle applies mainly to all contracts of property and pecuniary insurance.
The time an insurer or underwriter is called upon to honour its obligation under an insurance contract is at the time of a loss or when the insured suffers a loss or damage or experiences a misfortune. The intention of the insured after paying the premium is to be placed in the position he was immediately before a loss subject to the terms and conditions of the policy.
Indemnity could be viewed to be a mechanism by which insured to the same pecuniary position after the loss as he enjoyed immediately before it.
By the principle of Lord Justice Breath, in the case of Castellan V. Preston held that indemnity was the controlling principle of insurance . It is placing of the insured in the same financial position he was immediately before a loss.
