Question: What Is Indemnity Example?

What is another word for indemnity?

Some common synonyms of indemnify are compensate, pay, recompense, reimburse, remunerate, repay, and satisfy..

What is the difference between insurance and indemnity?

Insurance vs Indemnity Insurance can be seen as a periodic payment that is made to guard against any losses suffered, whilst indemnity is a contract between two parties for which the injured party will receive compensation for any losses.

What happens when you indemnify someone?

In a mutual indemnification, both parties agree to compensate the other party for losses arising out of the agreement to the extent those losses are caused by the indemnifying party’s breach of the contract. In a one-way indemnification, only one party provides this indemnity in favor of the other party.

How much does an indemnity policy cost?

Your conveyancing solicitor will usually be able to help you find a provider. The cost of a building regulations indemnity insurance policy depends on the value of the property and the work that’s been carried out, but most policies don’t cost more than a few hundred pounds.

What is the basic principle of indemnity?

Principle of Indemnification — a defining characteristic of insurance, providing that a loss payment will replace what is lost, putting the insured back to where it was financially prior to the loss without rewarding or penalizing the insured for its loss.

Why do I need indemnity insurance?

Professional Indemnity Insurance provides cover for legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarded, if you’re alleged to have provided inadequate advice, services or designs that cause your client to lose money.

How do you write an indemnity clause?

“[Company/Business/Individual Name] shall fully indemnify, hold harmless and defend _______ and its directors, officers, employees, agents, stockholders and Affiliates from and against all claims, demands, actions, suits, damages, liabilities, losses, settlements, judgments, costs and expenses (including but not …

What is meant by indemnity?

Indemnity means making compensation payments to one party by the other for the loss occurred. Description: Indemnity is based on a mutual contract between two parties (one insured and the other insurer) where one promises the other to compensate for the loss against payment of premiums.

What is the purpose of an indemnity?

Indemnity is a contractual obligation of one party (indemnifier) to compensate the loss incurred to the other party (indemnity holder) due to the acts of the indemnitor or any other party. The duty to indemnify is usually, but not always, coextensive with the contractual duty to “hold harmless” or “save harmless”.

How do you use indemnity in a sentence?

Indemnity sentence examples. Members of the Senate and of the House of Commons receive an annual indemnity of $250o, with a travelling allowance. Huxley gave it as his opinion that it was sufficient to cover the whole cost of the war indemnity paid by France to Germany in 1870.

What is the opposite of indemnify?

indemnify. Antonyms: fine, mulct, amerce. Synonyms: compensate, se cure, satisfy, reimburse.

What is the difference between indemnity and non indemnity insurance?

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. … Non-indemnity insurance tends to cover things with no real replacement value. The amount of compensation received cannot be directly correlated with the loss.

What is an indemnity letter?

Introduction to Letter of Indemnity A letter of indemnity is often referred to as an LOI. It is a document used to enter a contract which ensures some terms are met between the parties entering the contract. … The idea of indemnity is derived from avoiding losses on account of someone else committing a mistake.

To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.

What does shall indemnify mean?

A contractual indemnification provision often begins with a statement that a party shall “indemnify, defend and hold harmless” one or more other parties from and against losses, damages, etc. arising from or relating to certain acts, omissions or occurrences.

How does an indemnity work?

Indemnification Meaning Whether indemnity liability arises under a contract or not, it compensates another person for any harm which comes to them: to put them in a position where they have not suffered loss. It’s an additional promise which applies over and above an ordinary claim for damages for breach of contract.

Who is responsible for indemnity insurance?

In most cases, it will be you as the seller of the property who pays the insurance premium. This is on the basis that you are selling a property that potentially has various issues. However, in some cases, the parties will split the premium between them.

What is the difference between an indemnity plan and a PPO?

The indemnity health policy is different than policies offered by health maintenance organizations (HMOs) and preferred provider organizations (PPOs) because it allows you obtain medical care where you choose providing compensation for a set portion of the costs.