Indemnifier - the person who promises to indemnify and the person in whose favor such a promise is made is known as indemnified or indemnity holder .
To indemnify someone means to cover them for their loss in a certain circumstance . Most forms of insurance - except life insurance - are based on the indemnity principle . THis means you can only recover the replacement value of your loss .
Under English law the word indemnity carries a wider meaning . It includes a contract to save the promise from the loss whether it is caused by human agency or by natural calamity like accident or fire .
Contract of insurance except life insurance is a contract of indemnity .
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