The Principle of Indemnity is a fundamental principle of insurance that states that an insurance policy should only compensate the policyholder for the actual loss suffered, up to the amount insured. The purpose of this principle is to prevent the policyholder from profiting from the loss and to ensure that the policyholder is made whole again by the insurance policy.

Not Covered under Indemnity Principle:

Life Insurance is not covered under the principle of indemnity. This is because the loss in life insurance cannot be quantified in monetary terms. The purpose of life insurance is to provide a lump sum payment to the policyholder's beneficiaries in the event of the policyholder's death. The amount paid out is typically not related to the actual financial loss suffered by the beneficiaries.

Covered under Indemnity Principle:

1. Fire Insurance: Fire insurance is covered under the principle of indemnity. In the event of a fire, the insurance policy will compensate the policyholder for the actual loss suffered, up to the amount insured.

2. Marine Insurance: Marine insurance is covered under the principle of indemnity. If a ship is damaged or lost at sea, the insurance policy will compensate the policyholder for the actual loss suffered, up to the amount insured.

3. Theft Insurance: Theft insurance is covered under the principle of indemnity. If an insured item is stolen, the insurance policy will compensate the policyholder for the actual loss suffered, up to the amount insured.

In conclusion, the principle of indemnity is a fundamental principle of insurance that ensures that the policyholder is compensated for the actual loss suffered, up to the amount insured. While life insurance is not covered under this principle, other types of insurance such as fire, marine, and theft insurance are covered.

Answer A is right because principle of indeminity explains that loss payment will replace what is lost, and a person who died can't be replaced by loss payment