Which of the following types of insurance is usually excluded from the principle of indemnity?

Source: JAMB · 2024

Which of the following types of insurance is usually excluded from the principle of indemnity?

  1. Fidelity Guarantee
  2. Fire
  3. Life ✓
  4. Marine
Explanation

Indemnity means paying for actual loss suffered. Life insurance pays a fixed sum when someone dies, not based on financial loss.

Fire, marine and fidelity insurance pay based on the actual damage or loss amount.

You cannot put a price on human life, so life insurance pays a predetermined amount.

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