Motor Insurance is a contract of Indemnity.” Discuss

The principle   of indemnity requires that when a loss  arises   under an insurance policy, the loss must be made good  in such a manner that financially the insured is neither better  off  nor  worse  off  as  the  result  of  the  loss. The  object  of  this  principle  is  to  place  the insured after a loss in the same pecuniary  position  as  far  as  possible  as  he  occupied  immediately before the loss.

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