Indemnity

n. payment for loss or damage, compensation; insurance against possible loss or damage

An Indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnifying party (A) may or may not be responsible for the loss suffered by the indemnified party (B). Methods of indemnity:- a. Payment of cash b. Repairs c. Replacement d. Reinstatement
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Noun
1. protection against future loss
(synonym) insurance
(hypernym) protection, shelter
(derivation) indemnify
2. legal exemption from liability for damages
(hypernym) exemption, freedom
(derivation) indemnify
3. a sum of money paid in compensation for loss or injury
(synonym) damages, amends, indemnification, restitution, redress
(hypernym) compensation
(hyponym) relief
(derivation) compensate, recompense, repair, indemnify

(n.)
Security; insurance; exemption from loss or damage, past or to come; immunity from penalty, or the punishment of past offenses; amnesty.
  

(n.)
Indemnification, compensation, or remuneration for loss, damage, or injury sustained.
  

obligation of one party to reimburse another party for losses which have occurred or which may occur.