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What is an example of an indemnity?

A common example of indemnification happens with reagrd to insurance transactions. This often happens when an insurance company, as part of an individual's insurance policy, agrees to indemnify the insured person for losses that the insured person incurred as the result of accident or property damage.

What are the two purposes of indemnity?

There are two parties in an indemnity contract, including the indemnitee and indemnifier. The indemnitee is the party that is seeking protection, whereas the indemnifier is the one promising to hold harmless.

What is the meaning of indemnity in insurance?

Indemnity is one party's promise to compensate another for potential losses or damages. Indemnification is the act of compensating another party after a loss has occurred. In an indemnity contract, the indemnitee is protected from liability and the indemnitor holds the indemnitee harmless.

What is indemnity bond in India?

An indemnity bond is a legal document that gives you the right to collect compensation from the principal for a claimed situation. Concerning the agreement, the company is mandated to pay a premium. For this, the surety company is supposed to pay a premium.

What does indemnity mean?

Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party.

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How many types of indemnity are there?

There are basically 2 types of indemnity namely express indemnity and implied indemnity.

Is an indemnity bond enforceable in India?

Enforcement of indemnity bond The violation of the provisions of the contract is a requirement for the Indemnity bond to be enforced. The breach of contract creates liability, and the defaulting party is then accountable for compensating the other side.

What is the validity of indemnity bond?

The validity of indemnity bond is three years from the date given in the bond.

Is indemnity bond legal in India?

According to the law, Section 124 of the Indian Contract Act, 1872 states an agreement of indemnity between two parties wherein one party promises to pay for the damages of another party if caused by him or by another person.

Is bond legally valid in India?

In India, employment bonds are legal as far as they prescribe a reasonable penalty in case of violation. Nonetheless, the Indian Judiciary has preserved the interest of employees over than the interest of employers.

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What is an example of an indemnity?

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