The difference between indemnity insurance and non-indemnity insurance is that the latter provides?

A. cover for exporters against risks
B. cover for importers against risks
C. full payment to the insured
D. consolation payment to the insured

Correct Answer:

Option D – consolation payment to the insured

Explanation

Non-indemnity insurance tends to cover things with no real replacement value.

Indemnity means that the insured is entitled to a specific amount of compensation for a loss that is tied to a replacement, reimbursement, or fair-market value