indemnity or non indemnity meaning
Indemnity means that the insured is entitled to a specific amount of compensation for a loss that is tied to a replacement, reimbursement, or fair-market value. The primary difference is that with indemnity insurance, there is no âprofitâ so to speak.he amount of compensation received cannot be directly correlated with the loss. For example, life insurance is non-indemnity insurance because you cannot place a value or a cost of replacement on a personâs life.
In non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured.Life insurance contracts, personal accident and sickness insurance are examples of non-indemnity insurance.Rgds max_jaret@yahoo.com.n non-indemnity insurance the sum which the insured is entitled to receive from the insurer does not necessarily bear any relation to the actual loss, if any, suffered by the insured.