Definition of Indemnity:
Security or protection against a loss or other financial burden.
Undertaking given to compensate for (or to provide protection against) injury, loss, incurred penalties, or from a contingent liability. A shipping company, for example, will ask for a banks indemnity for releasing a shipment to a consignee who has lost original shipping documents. The bank in turn will require the consignee to sign a counter-indemnity before issuing its indemnity to the shipping company. This way the consignee gets the release of shipment in completion of a transaction, and both the shipping company and the bank are protected in case some dispute arises out of that transaction. See also letter of indemnity.
Indemnity is a comprehensive form of insurance compensation for damages or loss, and in the legal sense, it may also refer to an exemption from liability for damages.
Indemnity is considered to be a contractual agreement between two parties whereby one party agrees to pay for potential losses or damages caused by another party. A typical example is an insurance contract, in which the insurer or the indemnitor agrees to compensate the other (the insured or the indemnitee) for any damages or losses in return for premiums paid by the insured to the insurer. With indemnity, the insurer indemnifies the policyholder—that is, promises to make whole the individual or business for any covered loss.
Synonyms of Indemnity
Insurance, Assurance, Protection, Security, Indemnification, Surety, Endorsement, Guarantee, Warranty, Safeguard, Absolution, Amends, Amnesty, Assurance, Atonement, Award, Balancing, Blood money, Bond, Certification, Commutation, Compensation, Composition, Compromise, Consideration, Counteraction, Counterbalancing, Damages, Disbursement, Endorsement, Exculpation, Excuse, Exemption, Exoneration, Expiation, Expiatory offering, Grace, Guarantee, Guaranty, Guerdon, Honorarium, Immunity, Impunity, Indemnification, Insurance, Lex talionis, Making amends, Making good, Making right, Making up, Meed, Nolle prosequi, Non prosequitur, Nonprosecution, Offsetting, Pardon, Payment, Peace offering, Piaculum, Price, Privilege, Propitiation, Protection, Quid pro quo, Quittance, Reckoning, Reclamation, Recompense, Rectification, Redemption, Redress, Reimbursement, Remission, Remission of sin, Remuneration, Reparation, Repayment, Reprieve, Reprisal, Requital, Requitement, Restitution, Restoration, Retaliation, Retribution, Return, Revenge, Reward, Safety, Salvage, Satisfaction, Security, Shrift, Smart money, Solatium, Sparing, Squaring, Stay, Stocks and bonds, Substitution, Surety, Tie, Warrant, Warranty, Wergild
How to use Indemnity in a sentence?
- Since the new cars were coming in that afternoon, Arthur stopped by the bank to see what sort of indemnity could be arranged to protect the dealership completely.
- Due to the tricky nature of transporting the worlds most expensive diamond, indemnity was given to the truck company that was transporting the diamond because the truck route involved a very dangerous area of the country.
- The transport company asked for indemnity regarding shipping of a package to a customer who has lost the receipt documents.
- No indemnity will be given for loss of cash.
Meaning of Indemnity & Indemnity Definition