New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    An insurance policy designed to protect professionals

    and business owners when they are found to be at fault for a specific event such as misjudgement is termed as?
    A Indemnity Insurance Correct Answer Incorrect Answer
    B Business Default Insurance Correct Answer Incorrect Answer
    C Risk Hall Insurance Correct Answer Incorrect Answer
    D Entrepreneur Hall Insurance Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Indemnity is compensation for damages or loss, and in the legal sense, it may also refer to an exemption from liability for damages. The concept of indemnity is based on a contractual agreement made between two parties, in which one party agrees to pay for potential losses or damages caused by the other party. A typical example is an insurance contract, whereby one party (the insurer or the indemnitor) agrees to compensate the other (the insured or the indemnitee) for any damages or losses, in return for premiums paid by the insured to the insurer.

    Practice Next