Vocabulary Builder — Essay & Answer Writing
Indemnity
noun
/ in-DEM-nuh-tee /
Medium
Meaning
A contractual or statutory guarantee of compensation for loss, damage, or liability incurred by another party.
Origin / Etymology
From Latin *indemnitas* (state of being unhurt), from *indemnis* (unharmed), from *in-* (not) + *damnum* (loss, damage).
Synonyms
Compensation
Reimbursement
Protection
Antonyms
Liability
Forfeiture
Penalty
Example Sentence
"The launch of NCDEX's RAINMUMBAI parametric weather contract in May 2026 offered Indian farmers a faster, trigger-based payout alternative to traditional indemnity-based crop insurance under PMFBY."
🎯 UPSC Usage
GS3 (Economy — agricultural insurance, risk management; banking) and GS2 (Governance — welfare schemes): apply when contrasting parametric versus indemnity insurance, sovereign indemnity in nuclear liability, or contractual safeguards in PPP projects.
Relevant Subjects
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