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?
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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