Select the option from the choice given below:
The principle of indemnity is not applicable to _____ insurance.

life

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fire

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marine

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none of these

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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 the reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.
Fire and marine insurance are contracts of indemnity as the loss is measurable.

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