What is indemnity insurance?
Indemnity insurance means that the insurance company will pay the amount to restore you back to the position financially you were before. For example before the car accident and the claim was made.
So indemnity insurance is a technical term that your insurance company use to explain that they will put you back in the same financial position as before and recover your damage.
You often find the indemnity insurance in the policy statements. The indemnity insurance starts to operate precise after you have agreed and paid the insurance premium.
The indemnity insurance premium is determined by some factors:
For example, the cost incurred in the event of a loss. It could be a courtesy car, temporary arrangements, legal costs and repair costs. The attributes of the driver, the address and the car sets the probability of a loss.
The law requires from you
You need to provide a certificate of the car insurance that specifies what type of car insurance you have. The three types of car insurance cover is, comprehensive, third party with fire and theft and third party. For driving car, the legal requirement is minimum to be insured against damage claims and third party injury.
A summary for indemnity insurance
- Indemnity insurance means put you back in the same financial position as before.
- Car insurances is determined by driver, car and address for example.
- Three types of car insurance exist third party, third party theft and fire and comprehensive.
- You need to provide the car insurance certificate while driving.