The principle of indemnity does not apply to _______.
The principle of indemnity does not apply to Life insurance.
The principle of indemnity is a fundamental principle of insurance that requires the insurer to compensate the insured for the actual loss suffered as a result of an insured event, up to the limit of the policy.
However, life insurance is a type of insurance where the principle of indemnity does not apply.
Life insurance is designed to provide a sum of money to the beneficiary of the policy in the event of the insured's death, and the amount of the benefit is predetermined at the time the policy is purchased.
There is no loss to indemnify, as the benefit is paid out regardless of the actual financial loss suffered by the beneficiary.
Similarly, personal accident insurance provides a predetermined benefit in the event of accidental death or injury, and does not depend on the actual financial loss suffered by the insured.