Indemnity meaning

What is the meaning of indemnity? Definition of indemnity. Security against damage, loss, or injury.

An exemption from liability for damages resulting from specified conduct, as in a contract indemnifying a party for the performance of certain actions. Compensation for damage, loss, or injury suffered. Frequently confused with guarantee, an indemnity is a primary obligation that is enforceable irrespective of whether the beneficiary could sue the person responsible for causing the loss.

Indemnity is compensation for damage or loss. In case of loss of the vessel, the ship owner receives no indemnity for loss, but acquires immunity from payment of the loan. The policy may pay certain or all expenses for medical and similar services and a weekly or monthly indemnity for loss of income.

The duty to indemnify is usually, but not always, coextensive with the contractual duty to hold harmless or save harmless. Some indemnity claims arise by operation of law. For a one-off payment you get a policy that covers the cost implications of a third party making a claim against any defects with the property you are about to buy. Undertaking given to compensate for (or to provide protection against) injury, loss, incurred penalties, or from a contingent liability. Word forms: plural -ties.

Letters of indemnity are often used when transporting goods by ship: The letter of indemnity protects the shipping company against any claims that may arise from the issue of a clean Bill of Lading.

Insurance companies indemnify their policyholders against damage caused by such things as fire, theft, and flooding, which are specified by the terms of the contract between the company and the insured. The primary difference is that with indemnity insurance, there is no “profit” so to speak. Non-indemnity insurance tends to cover things with no real replacement value.

The bank in turn will require the consignee to sign a counter- indemnity before issuing its indemnity to the shipping company. Protection and indemnity insurance protects against third parties and environmental damage. That is, no claim other than the claims for indemnity under the insurance policies: in contemplation at the time of entering into the deed.

When you buy insurance and your insurance protects you from being sued or from financial loss, this is an example of indemnity. YourDictionary definition and usage example. An indemnity is the closest thing the law has to a blank cheque to recover financial loss.

The claims to indemnify another person can arise: in contract law, when they show up in contract clauses as part of a legal remedy even when there is no contract clause for indemnification. This contract depends upon happening a loss. Whereas Guarantee is made to enable a person to get loan or goods on credits or employment. It may be oral or expressed.

The Direct Debit Guarantee states that if an error is made in the payment of the Direct Debit by the collecting organisation (service user) or the payer’s bank or building society (paying Payment Service Provider or PSP) – then the payer is entitled to a full and immediate refund from their PSP. In simple terms, an indemnity policy is an insurance policy to cover a defect relating to a property. Such policies are commonly used to cover against the cost implications of a third party making a claim against the defects. Professional indemnity insurance, often referred to as professional liability insurance or PI insurance, covers legal costs and expenses incurred in your defence, as well as any damages or costs that may be awarde if you are alleged to have provided inadequate advice, services or designs that cause your client to lose money.

Example of a claim. This is the British English definition of indemnity.

The term ‘indemnity’ literally means “security or protection against a loss” or compensation. Be aware that once you have started down the indemnity route it may be difficult to change back to non- indemnity. So my advice is to choose your commission structure carefully.

Counter- indemnity. Jump to: navigation. A counter- indemnity is an obligation to make a reimbursement in relation to a primary indemnity , guarantee, bond or any similar arrangment.

For example, we may be a corporate supplier in a commercial contract. As part of the contractual arrangements, our bank may issue a performance bond to our customer.