Indemnisations

Indemnisations, or indemnisations, are monetary compensations paid to a person who has suffered loss or injury as a result of an insured event, fault, or a statutory provision. The aim of indemnisation is to restore the injured party to the financial position they would have enjoyed if the loss had not occurred, within the limits set by laws, regulations, and contract terms. The concept is used in several legal and policy contexts, including private insurance, civil liability, and public social protection.

Indemnisations arise in a variety of settings. In insurance, the insurer pays for covered losses such as property damage, health care costs, or income loss. In civil liability, a claimant may be entitled to indemnification for damages caused by another’s fault or negligence. Statutory schemes, including workers’ compensation or other social protection programs, provide indemnities for specified categories of harm. Payments can be made as a lump sum or as periodic benefits (annuities or monthly payments) and may cover economic damages (medical expenses, loss of earnings) and, where permitted, non-economic damages (pain and suffering), depending on jurisdiction and policy.

The amount and method of indemnisation are typically determined by contract terms, applicable statutes, or judicial decisions. They may be capped, offset by other benefits, or reduce for contributory fault, and can involve subrogation rights when another party bears ultimate responsibility. Variations exist across legal systems, and the term indemnisation is sometimes used interchangeably with related concepts such as damages or compensation, depending on national practice.