Understand how losses are measured and how the principle of indemnity applies to insurance claims
8.1 Explain the principle of indemnity.
8.2 Explain the measure of indemnity in various classesof insurance.
8.3 Explain the factors which limit, reduce, extend ormodify the principle of indemnity.
8.4 Explain the methods of providing indemnity.
8.5 Explain the doctrine of salvage and abandonment.
8.6 Explain the effect of claim payments on policy cover.
8.7 Apply how losses are measured and the principle ofindemnity to practical situations