indemnity

C1 · Advanced Countable noun Law Formal · Technical

n. money paid to someone to cover the cost of a loss or injury.

n. compensation for loss, damage, or injury sustained. Countable when referring to specific payments.

“The government paid a large indemnity to the landowners after seizing their property.”

“Following the breach of contract, the court ordered the defendant to pay an indemnity sufficient to cover the plaintiff's lost profits.”

C2 · Proficiency Uncountable noun Law Technical

n. the rule that insurance should only return you to your original financial state, not make you richer.

n. the principle that an insurance policy should restore the insured to their approximate financial position prior to the loss.

“Under the principle of indemnity, you cannot claim more than the house was worth.”

“The insurer argued that the claim violated the principle of indemnity, as the payout would have resulted in a significant windfall for the policyholder.”