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Which statement best explains Indemnity?

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Question ID #26994 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 5 Medium

Which statement best explains Indemnity?

Correct Answer: D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms
Indemnity: Principle of restoring insured to approximately the financial position before loss, subject to policy terms

Question: Which statement best explains Indemnity?

A. Dominant effective cause used to determine whether a loss falls within policy coverage

B. Consideration paid for insurance coverage

C. Insurance Regulatory and Development Authority of India

D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms

Correct Answer: D. Principle of restoring insured to approximately the financial position before loss, subject to policy termsIndemnity: Principle of restoring insured to approximately the financial position before loss, subject to policy terms

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Which statement best explains Indemnity? - MCQ Explanation

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Correct answer: D. Principle of restoring insured to approximately the financial position before loss, subject to policy terms