The Principle of Indemnity is Applicable to --.
A)Life Assurance
B)General Insurance
C)Life Assurance and General Insurance
D)Neither Life Assurance, Nor General Insurance.

Question

Quizplus · Accepted Answer

The Principle of Indemnity is applicable to general insurance. This principle ensures that the insured is compensated for the loss or damage up to the actual amount of loss, but not more, preventing the insured from profiting from the insurance claim. It does not apply to life insurance, where the concept of indemnity is not relevant because the value of a human life cannot be financially measured in the same way as property or other insured items.

The Principle of Indemnity Is Applicable to --