Question

how fire insurance policy is a contract of indemnity? anwer it's is a contract of indemnity - fire insurance is a contract of indemnity.this is mean that insured cannot be benefitted from fire insurance. he cannot take compensation more than the sum assured . for instance - a person gets his shop insured for ₹ 50,000. after some time his shop catches fire this fire cause him a loss of ₹ 30,000 . insurance company will compensate him for his actul loss i.e ₹ 30,000. if loss is for ₹70,000 insurance company will pay him₹ 50,000.
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Answer 1

Answer:

Fire Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. ... Fire insurance contracts runs on the principle of indemnity.A contract of insurance is a contract of indemnity because both are contingent on happening of an event, both are special contracts but the general principal applies to both, a promise to compensate is common and consideration must be there in both.Fire insurance policies provide payment for the loss of use of the property as a result of a fire or for additional living expenses necessitated by uninhabitable conditions, as well as damage to personal property and nearby structures.