Application of Principle of Indemnity to Various Branches of Insurance Life

Except for life and particular accident insurance, all insurance contracts are contracts of reprisal. Life and particular accident insurance aren't contracts of recompenses simply because life or branch can not be valued in terms of plutocrat.

fairly, thus, these two types of insurances have been kept outside the compass of the principle of reprisal. In proposition, any person can affect any number of programs for any quantum and at the time of claim, all similar programs must pay all the sum ensured under all similar programs.

Indeed though this is the position of law, nonetheless, insurers would always try to put a check on the possible moral hazard by confining the sum- ensured on the fiscal capability and standing of a man, that's to say, his uninterrupted decoration payment capacity.

It has to be easily conceived then that such a check is purely an underwriting check so that the principle of reprisal isn't fully shattered, but such a check isn't a legal check, that's to say, from the legal point of view similar programs are indeed not contracts of recompenses and there's no reason why a man can not fairly get any number of programs for any quantum.

Non-Life

Piecemeal from life and particular accident insurances, all other types of insurances are contracts of recompenses.

thus, Marine, Fire, Motor, EAR, CAR, Burglary, Fidelity Guarantee, Employers Liability, Public Liability, Aviation, Engineering, Products Liability, Crop insurance, Beast insurance,etc. are each contracts of reprisal.