Question on: JAMB Commerce - 2013
The difference between indemnity insurance and non-indemnity insurance is that the latter provides
A
cover for exporters against risks
B
cover for importers against risks
C
full payment to the insured
D
consolation payment to the insured
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Correct Option: D
Indemnity insurance aims to restore the insured to the financial position they were in before the loss. Non-indemnity insurance, however, does not provide full compensation for the loss. Instead, it pays a predetermined sum, and this can be considered as a form of consolation.
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