n NISM Certifications
NSM General NISM
Medium

What is the Principle of Indemnity?

Practice question from IC 38 Mock Test 18 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Policyholder suffering a loss is compensated exactly for the loss and no more

    Correct answer

  2. B

    Policyholder is compensated more than the loss

  3. C

    Insurer assesses economic value of the loss and compensates accordingly

  4. D

    Insurer is not liable to compensate

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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