Explain indemnity and give an example.

Indemnity means a sum of money paid as compensation for loss, or restoring the insured person to the financial position he or she had before the loss occurred.

If Rob's car is worth $2,500, he will receive $2,500 if his car is stolen, no more, no less.

Step-by-step explanation:

Edmentum

Example:

(i) Insurance contract

(ii) Shipping company insurer

Step-by-step explanation:

we know that

Indemnity:

It is a type of compensation which can be paid by one person to another person because of damages or losses or incurred penalty

or it is exemption from liability for damages or losses

For example:

Insurance contract

In insurance contract, the insurer agrees to compensate for any damages to their customer

All the expenses will be taken care of insurer

Other example can be shipping company insurer