Insurer undertakes to compensate the loss suffered by insured.
A
True
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
False
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A True Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Insurer 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. The principle of indemnity is applicable to the insurance contracts, except to life insurance contracts.