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Should indemnity holder be indemnified before or after a loss?
Can an indemnity holder be asked to indemnify a holder?
Can an indemnity holder sue the indemnifier after payment?
Can an indemnifier be made to pay before a loss?
Sep 16, 2022 · As per English law, contracts of insurance are indemnity contracts, as, under contracts of insurance, one party has incurred a loss and the other has promised to make good for a loss so incurred by the indemnified party.
- Rachit Garg
Feb 1, 2023 · Whether the indemnifier can be asked to indemnify the indemnity holder before he has suffered any loss of goods or money. An indemnity holder is entitled to be indemnified only after he has suffered a loss under English common law; until then, there can be no action from the side of the indemnifier.
Jun 23, 2024 · Traditionally, under English common law, indemnity was payable only after the indemnity-holder had suffered actual loss by paying off the claim. This principle was encapsulated in the maxim: "you must be damnified before you can claim to be indemnified."
Feb 8, 2024 · Under the original English rule, the indemnifier will be held liable only after the indemnity holder or the indemnified has suffered an actual loss by paying off the claim. This is based on the legal Maxim “you must be damnified before you are indemnified” which means that the indemnity holder should have been in any kind of loss or damage ...
Dec 25, 2022 · An indemnity is not always granted by repayment following payment, and an indemnity holder has the right to sue the indemnifier even before suffering any actual injury or loss. As a result, after the liability has arisen, the indemnified party may request payment from the indemnifier.
After paying the indemnity holder, the indemnifier can use any available defences against the loss. However, many high courts in India upheld the following guidelines: Before the indemnified person has incurred a loss, the indemnifier is not responsible.
In this case, the court held that an indemnity holder cannot recover more than the actual loss suffered by him. It was also held that the indemnity holder must mitigate his loss and cannot retrieve any loss that could have been avoided by taking reasonable steps. Larsen & Toubro Limited v. Maharashtra State Electricity Board, 1995 [6]
