Insurance
Fundamental principles of insurance
Some useful terms in Insurance:
Indemnity
A contract of insurance contained in a fire, marine, burglary or any other policy
(excepting life assurance and personal accident and sickness insurance) is a
contract of indemnity. This means that the insured, in case of loss against
which the policy has been issued, shall be paid the actual amount of loss not
exceeding the amount of the policy, i.e. he shall be fully indemnified. The
object of every contract of insurance is to place the insured in the same
financial position, as nearly as possible, after the loss, as if
he loss had not taken place at all. It would be against public policy to allow an insured to make a profit out of his loss or
damage.