1)what is the difference between commercial indemnity and strict indemnity 2) in case of hull policy , the amount insured is fixed at a level above the current marked value.What is the meaning and why is it so?
Dear student,
1) Indemnity means a promise to compensate in the event of loss.
Commercial Indemnity means that the insurer promise to indemnify the insured in the agreed manner and to the agreed extent. While, strict indemnity provides that the insured can claim the actual amount of loss suffered from insurer subject to the maximum amount of which policy is taken.
2) In case of hull policy, the amount insured is fixed at a level above the current market value means the hull policy is usually taken for a value above the current market value of ship, like if current market value of ship is 200,000 dollar, then the policy should be taken for a amount above 200,000 dollar. This is done because the market value of ship keeps on fluctuating.
Regards
1) Indemnity means a promise to compensate in the event of loss.
Commercial Indemnity means that the insurer promise to indemnify the insured in the agreed manner and to the agreed extent. While, strict indemnity provides that the insured can claim the actual amount of loss suffered from insurer subject to the maximum amount of which policy is taken.
2) In case of hull policy, the amount insured is fixed at a level above the current market value means the hull policy is usually taken for a value above the current market value of ship, like if current market value of ship is 200,000 dollar, then the policy should be taken for a amount above 200,000 dollar. This is done because the market value of ship keeps on fluctuating.
Regards