2025 · Q87
Which one of the following is not a Contract of Indemnity?
General Accounting Principles, Auditing and InsuranceTypes of accounts
- AContract of Fire Insurance
- BContract of Life Insurance
- CContract of Marine Insurance
- DContract of Motor Insurance
Explanation
Life insurance is a contract of assurance, not of indemnity, because the loss of life cannot be measured in money and a fixed sum is paid. Fire, marine and motor insurance are contracts of indemnity, paying only the actual loss suffered.