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Question
Fill in the blank:The principle of indemnity is not applicable to ______ insurance.
Fill in the blank:
The principle of indemnity is not applicable to ______ insurance.Open in App
Solution
The correct option is C life
Under life insurance, subject matter of insurance is the life of an individual. The principle of indemnity does not apply to a life insurance as the life of a person cannot be valued in terms of money. For this reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.Under fire, marine, and motor insurance contracts the loss is measurable.
Under life insurance, subject matter of insurance is the life of an individual. The principle of indemnity does not apply to a life insurance as the life of a person cannot be valued in terms of money. For this reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.
Under fire, marine, and motor insurance contracts the loss is measurable.
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