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
Correct Answer: Option D
Explanation
Non–indemnity insurance tends to cover things with no real replacement value.
Indemnity means that the insured is entitled to a specific amount of compensation for a loss that is tied to a replacement, reimbursement, or fair-market value