Question

State the following statement is True or False:

Fire insurance is a contract of indemnity.

• A. True
• B. False

Answer 1

The correct option is A True

Fire Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Insurance company agrees to safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. Fire insurance contracts runs on the principle of indemnity.