Question

Principle of indemnity is not applicable to ________. (Fill in the blank by choosing correct option) a) Life insurance b) Fire insurance c) Marine insurance

Answer 1

PRINCIPAL OF INDEMNITY IS NOT APPLICABLE TO LIFE INSURANCE

Answer 2

This principle is not applicable to the a) Life Insurance contract.

The principle of indemnity ensures that the insured does not benefit anything excess to his monetary loss.

In case of a life insurance contract, such benefit cannot be exercised by the insured as the value of his life cannot be ascertained in monetary terms.

In a fire and marine insurance contract, the value can be determined, hence the principle is applicable.