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Why principle of indemnity not applies in life insurance?​
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36 votes
36 votes
Why principle of indemnity not applies in life insurance?​

User Weihong Diao
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2 Answers

14 votes
14 votes

Step-by-step explanation:

The principle of indemnity is not applicable to life insurance because the insurer may pay any amount but the insured cannot be brought back to the same state. Also, the loss of a life is not measurable and no money can indemnify the loss of a life.

User Donfede
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17 votes
17 votes
The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened. Since the value of human life cannot be ascertained, the principle of indemnity does not apply as it is not possible to quantify the loss. WRITE IN YOUR OWN WORDS
User Washingon
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