Business Studies

Fill in the blank:
The principle of indemnity is not applicable to ______ insurance.


ANSWER

life


SOLUTION
Under life insurance, subject matter of insurance is the life of an individual. The principle of indemnity does not apply to a life insurance as the life of a person cannot be valued in terms of money. For this reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.
Under fire, marine, and motor insurance contracts the loss is measurable.
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Single Correct Medium Published on 18th 08, 2020
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