The insured who suffered a loss would be entitled to the amount of compensation payable for the loss under the principle of?
-
A.
insurable interest -
B.
utmost good faith -
C.
indemnity -
D.
contribution
Correct Answer: Option C
Explanation
– Indemnity is a comprehensive form of insurance compensation for damages or loss and, in the legal sense, it may also refer to an exemption from liability for damages. Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to compensate the loss occurred to the other party (indemnity holder) due to the act of the indemnitor or any other party.