MCQ
Select the proper option from the options given below and rewrite the completed sentence.
Principle of indemnity is not applicable to ________.
Options
Life insurance
Fire insurance
Marine insurance
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Solution
Principle of indemnity is not applicable to life insurance.
Explanation:
According to the principle of indemnity, the insurer assures the insured that he/she will bring the insured back to the position he/she was in prior to the occurrence of an uncertain event. As in case of life insurance, the deceased person cannot be made alive again. Hence, the principle of indemnity is inapplicable here.
Concept: Role of Transport
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