Concept:Indemnity means compensating the exact financial loss suffered.
It applies only where the loss can be measured in money.
Explanation:The principle of indemnity ensures that an insured person is restored to the financial position before the loss.
It applies to general insurance contracts such as fire, burglary, and marine insurance.
These policies cover property or assets whose value can be objectively calculated.
Life assurance is different because it is a contract of contingency, not indemnity.
A human life has no fixed or measurable financial value.
The sum assured in life assurance is decided in advance and paid on death or maturity.
The insurer cannot assess the exact loss caused by a person's death.
Therefore, the principle of indemnity cannot be applied to life assurance.
Answer:B. Life assurance