Fundamental purposes of the principle of indemnity include which of the following?
I.To reduce physical hazards
II.To prevent the insured from profiting from insurance

Question

Quizplus · Accepted Answer

The principle of indemnity in insurance is primarily designed to prevent the insured from profiting from insurance, ensuring that they are compensated only up to the actual value of the loss. It does not directly aim to reduce physical hazards.

Fundamental Purposes of the Principle of Indemnity Include Which of the Following