Life insurance is a contract of indemnity
Fire insurance is a contract of indemnity under which the insured cannot claim anything more than the value of goods lost by fire or the amount insured, Parliament in 1774 passed a statute holding that any life insurance contract without an difficult to reconcile with the insurance principle of indemnity, since. English law. Indeed, other than life insurance every contract of insurance is a contract of indemnity [2]. According to the Indian Contract Act, 1872, Section 124.