What is the principle of indemnity? Why is this principle important?

1 answer:

8 0

This principle states to compensate the insured organization or private individual so that their financial position is not affected by the loss. This principle means that someone seeking to take out insurance should not be able to earn a profit from the loss incurred. Example; an office fire ruins computers and therefore the insurance company would compensate only for the value of the equipment and they would not buy a brand new computer as this would mean that the insured individual or business has profited from the fire caused.

You might be interested in

your supervisor, ashby, wants you to make an appointment for her to meet with a friend of yours, kevin. she wants to make a sale

Novay_Z [31]

Coercion is used by Ashby as she threatened to withhold your promotion if you don’t make the appointment.

<h3>What is Coercion?</h3>

The Indian Contract Act's Section 15 defines coercion as "committing or threatening to commit any act prohibited by the Indian Penal Code, or unlawfully detaining, or threatening to detain, any property, to the prejudice of any person whatsoever, with the intention of causing any person to enter into an agreement."

<h3>Give an example of Coercion.</h3>

For instance, if B refuses to sell his house to A for 5 lakh rupees, A may threaten to harm him. Here, even if B sells the house to A, the agreement won't be enforceable because B's cooperation was coerced. Now, coercion has the result of rendering the contract void.

Learn more about coercion here:
brainly.com/question/9000630
#SPJ4

3 0

1 year ago

Unlike merchant wholesalers, ___________ never actually own the goods they help to distribute. rack jobbers retailers cash-and-c

ANEK [815]

The correct answer is agents and brokers. Agents and brokers are considered to be a non-manufacturing traders by which they sell, buy, or even facilitate the traded products of which the goods that they sell are not theirs or they didn't actually owned it.

6 0

3 years ago

#20 Employers include __________ plan coverage in fringe benefit programs to retain high-quality employees and ensure productivi

harina [27]

Answer:

Group health

Explanation:

As a company it's the duty of owner and management to take care of their employees health
It's difficult to run individual healt programmes hence companies run group health programs

8 0

2 years ago

If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic

igor_vitrenko [27]

Answer:

I believe its C

7 0

3 years ago

Kuong Inc. sold a commercial office building used in the corporate business for $1.5 million. Kuong purchased the building in 20

mars1129 [50]

Answer: $107,600 ordinary gain and $530,400 Section 1231 gain

Explanation:

Section 1231 property is when a business property that's either real or depreciable is held for more than one year. It should be noted that section 1231 gain which arises when the property is sold will be taxed at lower capital gains tax rate which is versus the ordinary income rate.

Therefore, Kuong should characterize the $638,000 gain recognized on sale as $107,600 ordinary gain and $530,400 Section 1231 gain.

The correct option is C.

7 0

3 years ago