what is insurable intrest and Idemnity??? please answer this in too easy language.....

Insurable Interest : Insurable interest is an interest in a person or a thing so much that loss of that specific thing or person would cause financial loss or other kind of loss.The concept of insurable interest came about to support an insurance company for an insurance. policy.For instance,you have an insurable interest in your car,so you can get your car insured,But ,if you apply for insurance policy for neighbor's car,then that won't support the "insurable interest" concept.

Similarly,Life insurance can also be done,since one has an insurable interest in one's life.

 Indemnity : According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap).
Example: If an individual suffers a loss of Rs. 1 lakh in a fire accident, then the insurance company will accept a claim up to Rs. 1 lakh and not more.