| The word indemnity means security against loss. It implies a promise to compensate in case of a loss, except life insurance. The insured will be compensated only upto the amount of loss suffered by him. The insured party can not make a profit out of this insurance contract. | Every insured person must have a monetary interest, without which no insurance contract is valid legally. A person is said to have an insurable interest in the subject matter insured, if he is benefitted by its existence and suffers a loss by its destruction. |
