Bharti AXA INSURANCE GLOSSARY Contract Of Indemnity Contract Of Indemnity A contract of indemnity promises to secure a party from losses caused by either the conduct of the promisor or the conduct of any other person. Section 124 of the Indian Contract Act states that indemnity does not cover loss caused by events that do not depend on conduct of indemnifier or any other person. All insurance contracts other than life insurance are contracts of indemnity. In simple terms, indemnity is protection against future loss. The party that promises to protect the other is known as the Indemnitor or Indemnifier. The party which is compensated is called the Indemnitee, Indemnified or the indemnity-holder. An indemnity, for example, can be defined as an assured sum paid by the indemnifier to the indemnified by way of compensation for a particular loss suffered by B. Indemnity could be provided in form of cash payments, repairs, replacement, or reinstatement. A contract of Indemnity needs to meet all the conditions of a valid contract to be enforceable. Once the compensation is provided, the indemnifier is allowed to recover the costs though all the means which the indemnifier could have used to protect themselves. Further, loss to the indemnified is essential before the indemnifier can be held liable. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.