Question

What is the primary principle behind the Principle of Indemnity in non-life insurance policies?

a.

To provide a profit to the insured

b.

To compensate the insured beyond the actual loss

c.

To restore the insured to their financial position before the loss

d.

To maximize the insurer's profits

Posted under IC38 Life Insurance Agent Exam

Answer: (c).To restore the insured to their financial position before the loss Explanation:The Principle of Indemnity aims to restore the insured to their financial position as it was before the occurrence of the loss event.

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Q. What is the primary principle behind the Principle of Indemnity in non-life insurance policies?
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