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What Is The Meaning Doctrine Of Indemnity?

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Nicole Manion Profile
Nicole Manion answered
To understand this term you need to understand the meaning of both of the key words: Doctrine and indemnity.

  • Doctrine

This comes from the Latin word doctrina, and is the codification of beliefs, or some teachings. This can be more easily understood if you apply it to religion, where it is easy to see that a belief system is built up on a doctrine of things that have been taught.

Doctrine can also apply to the legal world, and in this case makes reference to a point of law that has been developed over many years and so becomes a belief. Examples of this are the doctrine of fair use; or the doctrine of self defense. These are ideas that have been finely tuned over the years and so now seem to be set in stone.

  • Indemnity

Indemnity is a sum of money that is paid as compensation to another party. The most obvious compensation that springs to mind in our ambulance chasing society is the compensation that is paid for an injury or damage that has been caused by the negligence of somebody else, but there are other types of compensation that are also indemnity.

This means that indemnity can cover things such as replacing faulty goods, or repairing something that is faulty. It can mean refunding items that were bought for cash, and it can mean reinstatement.

Legally, indemnity has many more different meanings, more of which you can learn about on this site: http://en.wikipedia.org/wiki/Indemnity, but as a general rule it means compensating someone for something.

  • Doctrine of Indemnity

Doctrine of Indemnity, therefore, is the rules that govern indemnity and those that have been developed and honed over the years so that they cover all eventualities. It also means that they are set in statute and so are clearly defined.
Rabbia Pasha Profile
Rabbia Pasha answered
From the basic principle of indemnity, there arise several important doctrines such as
1- Contribution
A person can get his goods insured with more than one insurance company. In the event of a loss, each company will contribute that proportion of the loss with the policy issued by it bears to the total amount, insured with various companies.
2- Subrogation
A principle arising fro the doctrine of indemnity is that of the insurance company to subrogation (to find a substitute for) of the insured claims against those responsible for the loss.

3- Proximate cause
According to this rule, the insurance company will pay for the compensation of the incident that is immediate cause of loss. If the immediate cause is some other peril which has been specially excluded in the insurance policy, then the insured cannot claim compensation from the company. For instance a person's house which has fire insurance suddenly catches fire. The company would pay the actual loss. If the house catches fire due to the accident of petrol tanker and the fire caused due to the road accident is excluded from the fire policy, then no claim will be accepted of the loss of fire by the insurer as the remote cause is not covered in the policy.

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