The principle of indemnity would prevent:
1. the act of one person from being imputed to another.
2. an insured from collecting more than he lost.
3. a negligent third party from being held liable for damages if the injured party was insured.
4. a significant amount of loss control activity.
5. an insurer from ever waiving it's right to subrogation.

Principle of indemnity

Explanation:

Principle of indemnity is term used in insurance business which ensured for fixed return  but not more than the loss that one has.

Principle of indemnity ensured the insured to return that amount that is near to same financial position that has before loss has occurred and if insured amount is greater than original value then it should not claim one to get more money.

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