Indemnity

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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