Concept:Indemnity restores the insured to their exact financial position before a loss, but life insurance cannot apply this principle because human life has no fixed financial value.
Explanation:Insurance contracts like fire, marine, fidelity guarantee, and motor insurance are contracts of indemnity.
They compensate only for the actual financial loss suffered, up to the policy limit.
Life insurance is different because the insurer pays the agreed sum assured upon the insured’s death or maturity.
The amount paid is not measured by a financial loss, since life cannot be valued in monetary terms.
Therefore, life insurance is usually excluded from the principle of indemnity.
Answer:D. Life