New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    The principle ensuring an insured is not compensated

    more than the actual loss is:
    A Subrogation Correct Answer Incorrect Answer
    B Contribution Correct Answer Incorrect Answer
    C Indemnity Correct Answer Incorrect Answer
    D Utmost good faith Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The principle of indemnity states that an insured should not profit from an insurance claim. The insurer's liability is generally limited to compensating the insured for the actual financial loss suffered.

    Practice Next