Indemnity

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Related to indemnities: indemnification, Indemnity clause

Indemnity

A legal obligation to cover a liability, however arising.

Indemnity

In law, compensation that one party is required to make to another for some loss, even if the compensating party did not directly cause the loss. For example, if Joe and Bob have a contract whereby Joe will pay for Bob's medical expenses should they arise and Bob is injured, then Joe must pay indemnity even if Joe did not cause the injury. If there is no contract specifying otherwise, however, the obligation to pay indemnity usually falls to the party that caused the loss.

indemnity

an arrangement whereby a financial institution such as an INSURANCE COMPANY agrees to compensate a client for any financial losses suffered as a result of damage, theft or loss of the client's property.
References in periodicals archive ?
Given this, it is reasonable that the council provides them with a suitable indemnity in respect of their legal costs in respect of the employment claim.' The indemnities would not apply if 'their actions were fraudulent, deliberately wrong or reckless or not authorised by the council'.
"If employers want to carve out exceptions to indemnities for legal fees, they have to say so at the time," Barnett says.
BEIRUT: Retired state employees urged the government Thursday to adjust end-of-service indemnities in line with expected wage increases for civil servants.
(1) Byron Shaw, "Indemnities for Acts Done at Another's Request" (2011) 44:2 UBC L Rev 331.
In both the previous regulations and the Labour Law, end-of-service indemnities for employees paid on a monthly basis are determined by calculating 15 days' wages for the first five years of service and one month's wage for each of the following years, provided that the total amount of the indemnity does not exceed the wages of one year and a half.
It is not unusual to find indemnities in stock deals in the insurance sector that, for example, carve out extra-contractual liabilities--or even all contingent and unknown liabilities arising prior to the closing.
The case illustrates how difficult questions can arise in analysing indemnities and guarantees and underlines the need to seek proper legal advice.