Question

What is the definition of indemnity?

A. the amount you pay each year to the insurance company
B. having a financial stake in the risk being insured
C. restoring the person to the financial position he or she had before the loss

Answer 1

security or protection against a loss or other financial burden.

Answer 2

C. restoring the person to the financial position he or she had before the loss

Explanation:

The definition of indemnity is - restoring the person to the financial position he or she had before the loss.

In general, indemnity refers to the protection against any financial loss. The indemnity also provides protection to the people insured in case of loss and damage. This also protects the insurers against any legal hassle that may occur.