Define: Indemnity

UK Accounting Glossary

Definition: Indemnity


Quick Summary of Indemnity


Protection from future loss, either by repayment or a promise to not require repayment.



What is the dictionary definition of Indemnity?

Dictionary Definition


  1. An obligation or duty upon an individual to incur the losses of another.
  2. Repayment.
  3. The right of an injured party to shift the loss onto the party responsible for the loss.
  4. A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.

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Examples of Indemnity in a sentence


An accident and health indemnity policy provides monthly compensation to the policyholder if they are unable to work due to being in the hospital.
Most contracts include indemnity clauses that protect one or both parties from future damage claims.



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/indemnity/
Modern Language Association (MLA):
Indemnity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 21, 2020 https://payrollheaven.com/define/indemnity/.
Chicago Manual of Style (CMS):
Indemnity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/indemnity/ (accessed: February 21, 2020).
American Psychological Association (APA):
Indemnity. PayrollHeaven.com. Retrieved February 21, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/indemnity/

Definition Sources


Definitions for Indemnity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th February 2020.