Let’s start with a simple statement:
In accepting and dealing with your claim, your insurance company aims to restore you to the same financial position as you were in beforehand. This is known as the principle of Indemnity.
Let’s look at 2 simple examples of Indemnity in Motor and Home Insurance:
Where your motor insurance company accepts a claim for damage to your car they will either arrange for it to be repaired or, if it is deemed uneconomical to repair, they will make you a cash offer based on the cars’ current market value. Market value is the amount that you would reasonably pay for the car at the relevant t...Read more
About the author:Founder and Managing Director of Map Cover Ltd. Technical Motor & Property Insurance Underwriter turned Entrepreneur and Expert Witness.
Date:June 19th, 2018