Misrepresentation of Principle of indemnity
Answer (1)
7th Apr, 2020
Hello,
The principle of indemnity is a defining aspect of insurance, and it states that an insurance policy shall not provide compensation to the policyholder that exceeds their economic loss. This limits the benefit to an amount that restores the policyholder to the same financial state they were in prior to the loss.
In short, the insured shall get neither more nor less than the actual amount of loss sustained.
Best Wishes.
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