Concept:Life insurance is not a contract of indemnity because human life cannot be measured in monetary terms.
Explanation:A contract of indemnity is one in which the insurer compensates the insured for the actual financial loss suffered.
Fire insurance pays for the actual value of property destroyed or damaged by fire.
Burglary insurance compensates the insured for the actual value of goods stolen.
Motor insurance covers the actual cost of repairing or replacing a damaged vehicle.
In these policies, the amount payable is limited to the loss actually proved.
Life insurance, on the other hand, pays the agreed sum assured on the death of the insured or maturity of the policy.
The insurer does not require proof of financial loss before making payment.
Since a person's life cannot be assigned a monetary value, the principle of indemnity does not apply.
Therefore, life insurance is an exception to contracts of indemnity.
Answer:C. life insurance