The insured who suffered a loss would be entitled to the amount of compensation payable for the loss under the principle of?

Answer Details

The insured who suffered a loss would be entitled to the amount of compensation payable for the loss under the principle of indemnity. Indemnity is a fundamental principle of insurance that states that the compensation provided by an insurance policy should restore the insured to the same financial position as before the loss occurred, but not provide a windfall or profit. In other words, the purpose of indemnity is to put the insured back in the same position they were in prior to the loss, but not to provide more than that.