The principle of indemnity states that the insured cannot be compensated for an amount exceeding the insured's economic loss.

Question

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The principle of indemnity is a fundamental principle of insurance, which aims to ensure that the insured is restored to the same financial position as they were in before the loss occurred. This means that the insured cannot be compensated for an amount exceeding their economic loss.

The Principle of Indemnity States That the Insured Cannot Be