A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?a)Principle of Indemnityb)Principle of Insurable Interestc)Principle of Subrogationd)Principle of ContributionCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Principle of Indemnity in Insurance

The principle of indemnity is a fundamental principle of insurance, which states that the insurance policyholder should be compensated for the actual financial loss suffered due to the insured event, but not more than that amount. The principle is applicable to all types of insurance policies, including fire insurance.

In the given case, the person got his stock worth Rs. 50,000 insured for Rs. 70,000. This means that the insured value was more than the actual value of the stock. However, the principle of indemnity ensures that the insured person can only claim compensation for the actual loss suffered, which is Rs. 50,000, and not more than that.

When a fire occurred and the whole stock got damaged, the insurance company admitted a claim of Rs. 50,000 only, as per the principle of indemnity. This means that the policyholder received compensation for the actual loss suffered, and not for the inflated value of the stock.

Advantages of Principle of Indemnity

The principle of indemnity provides several advantages to both the insurer and the insured:

1. It prevents over-insurance and maintains the principle of insurable interest.

2. It ensures that the insured person is compensated only for his actual loss, which deters fraudulent claims.

3. It promotes fairness and equity in the settlement of claims.

4. It helps in reducing the cost of insurance premiums, as the insurance company does not have to bear the burden of inflated claims.

Conclusion

The principle of indemnity is an essential principle of insurance, which ensures that the policyholder is compensated for his actual loss and not more than that. In the given case, the insurance company admitted a claim of Rs. 50,000 only, as per the principle of indemnity, and provided fair and equitable compensation to the insured person.

Answer

B

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

the insured shall be compensated appropriately for the losses caused to the goods by the insurer

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Answer

The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.

Similar Commerce Doubts

A person gets his house (worth RS. 12,00,000) insured from three insurance companies, i.e., A: Rs. 2,00,000, B: Rs. 4,00,000, C: Rs. 6,00,000. At the time of incurrence of loss, the compensation will be paid by insurance companies in the ratio of 1: 2: 3. Identify the principle being referred here.

Which of the following is not covered under the principle of indemnity?

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