Indemnity

Definition

A contract whereby one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person (Section 124, ICA 1872). It involves two parties: Indemnifier and Indemnity-holder.

Example

"A insurance company promises to indemnify a car owner (B) against any loss from accidents. The insurance company is the Indemnifier and the car owner is the Indemnity-holder."

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