The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened I have two term policies with sums assured of ₹20 lakh and of ₹30 lakh .
They are from two different insurers. I also have a money-back policy of ₹10 lakh. If a claim was to be made, would all the three policies be enforceable? —Manish Jalan Yes, they will be enforceable.
In the case of life insurance policies, the principle of indemnity does not apply. The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened.