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Banking Term: Indemnity

Find important banking term that is useful in upcoming banking exam.

Jun 29, 2015 14:50 IST
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Banking Term: Indemnity

  • An indemnity is an obligation by a person (indemnitor) to provide compensation for a particular loss suffered by another person (indemnitee).
  • Indemnities form the basis of many insurance contracts; for example, a car owner may purchase different kinds of insurance as an indemnity for various kinds of loss arising from operation of the car, such as damage to the car itself, or medical expenses following an accident.
  • To guard or secure against anticipated loss; give security against (future damage or liability).

 

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