MANAGEMENT

Detailed explanation-1: -Indemnity is a guarantee to restore the insured to the position he or she was in before the uncertain incident that caused a loss for the insured. The insurer (provider) compensates the insured (policyholder).

Detailed explanation-2: -Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event. Business interruption insurance aims to put your business back in the same trading position it was in before the event occurred.

Detailed explanation-3: -compensation sufficient to place the insured in the same financial position after a loss as he enjoyed immediately before the loss occurred.” Indemnity thus prevents the insured from recovering more than the amount of his pecuniary loss.

Detailed explanation-4: -Principle of Indemnity states that the insured shall be compensated appropriately for the losses caused to the goods by the insurer, only to the extent that the insurer does not make a profit out of the loss that occurred.

Detailed explanation-5: -Principle of Indemnity In other words, the insured should be compensated the amount equal to the actual loss and not the amount exceeding the loss. The purpose of the indemnity principle is to set back the insured at the same financial position as he was before the loss occurred.