INDEMNIZATION Meaning and
Definition
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Indemnization refers to the act or process of providing compensation or reimbursement for a loss, damage, liability, or injury sustained by an individual or entity. It is a legal or financial arrangement that aims to restore the affected party to the same financial position they were in before the loss or damage occurred.
In the context of insurance, indemnization involves the payment of a sum of money by an insurer to the insured party to cover the losses specified in the insurance policy. This is often done through the settlement of claims or through the provision of financial resources to aid in the recovery.
Indemnization can also involve the transfer of responsibility for legal liability or expenses from one party to another. For instance, indemnification clauses in contracts typically state that one party will be responsible for compensating the other party for any losses or damages resulting from a breach of contract or negligence.
The purpose of indemnization is to reduce financial risk and provide a sense of security, ensuring that individuals or entities are not left to bear the burden of unforeseen costs or damages alone. It is often used as a means of protection against potential losses, and acts as a mechanism to provide compensation and restore the affected party to their pre-loss position.
Common Misspellings for INDEMNIZATION
- undemnization
- jndemnization
- kndemnization
- ondemnization
- 9ndemnization
- 8ndemnization
- ibdemnization
- imdemnization
- ijdemnization
- ihdemnization
- insemnization
- inxemnization
- incemnization
- infemnization
- inremnization
- ineemnization
- indwmnization
- indsmnization
- inddmnization
- indrmnization
