Question: What Is Another Word For Indemnity?

What is the meaning of indemnity?

making compensation paymentsIndemnity 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..

How do you use indemnity in a sentence?

Indemnity sentence examplesMembers 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.More items…

What is a letter of indemnity?

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.

What is the difference between indemnity and liability?

The difference between public liability and professional indemnity insurance is that public liability is tailored for claims by members of the public for injury, illness or damage while professional indemnity covers claims by clients for professional mistakes or negligence.

What is the definition of force majeure?

Force majeure clauses are contractual clauses which alter parties’ obligations and/or liabilities under a contract when an extraordinary event or circumstance beyond their control prevents one or all of them from fulfilling those obligations.

What is the opposite of indemnity?

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

Can you indemnify yourself?

You will have the option of absorbing these losses yourself or providing direct compensation to the person that was harmed by your action. The most important part of an indemnification clause is that it protects the indemnified party from lawsuits filed by third parties.

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 is the purpose of an indemnity?

Indemnity is a comprehensive form of insurance compensation for damages or loss. In this type of arrangement, one party agrees to pay for potential losses or damages caused by another party.

What is indemnity example?

Indemnity is compensation paid by one party to another to cover damages, injury or losses. … An example of an indemnity would be an insurance contract, where the insurer agrees to compensate for any damages that the entity protected by the insurer experiences.

What is the difference between indemnity and compensation?

Indemnity refers to a form of exemption from and/or security against certain losses, liabilities or penalties. Compensation is a form of payment given to a party, typically the plaintiff, for the loss, injury or damage he/she suffered as a result of the defendant’s actions.

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.

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 is a double indemnity?

Double Indemnity — payment by a life insurance policy of two times the face value when death results from an accident (e.g., an auto accident) as opposed to a health problem (e.g., cardiac arrest).

What are the rights of indemnity holder?

An indemnity-holder has the right to recover from the indemnifier all incidental costs which he may be compelled to pay in any such suit if, in bringing or defending it, he did not contravene the orders of the promisor, and acted as it would have been prudent for him to act in the absence of any contract of indemnity, …