Which of the following insurance contract is not based on the principle of indemnity?
Life insurance contract is not based on the principle of indemnity.
Life insurance is a type of insurance that provides financial protection to the beneficiaries of the insured individual in the event of their death.
Unlike property and casualty insurance, which is typically based on the principle of indemnity (i.e., the insurer will provide compensation to the insured for any actual financial losses they suffer as a result of an insured event), life insurance is not based on the principle of indemnity.
In a life insurance contract, the insurer agrees to pay a predetermined amount of money (the death benefit) to the designated beneficiary upon the death of the insured individual.
The amount of the death benefit is typically based on the amount of the insurance policy's coverage and the premiums paid by the insured.