Principle of indemnification

Term · Insurance and risk management · MLC-T-INS-002664

The core tenet in insurance that an insured should be restored to the same financial position they were in immediately prior to a covered loss, without profiting from the loss. This principle prevents the insured from receiving more than the actual amount of their loss. It is applied through mechanisms like actual cash value or replacement cost valuation.

Table 1. Record
Identifier	MLC-T-INS-002664
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-002664",
  "term": "Principle of indemnification",
  "field": "Insurance and risk management",
  "definition": "The core tenet in insurance that an insured should be restored to the same financial position they were in immediately prior to a covered loss, without profiting from the loss. This principle prevents the insured from receiving more than the actual amount of their loss. It is applied through mechanisms like actual cash value or replacement cost valuation.",
  "url": "https://mlchart.com/terminology/insurance/principle-of-indemnification/"
}

Record 2,684 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.