Economics 3366A/B Quiz: The Indemnity Principle
22 Sep 2020
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You have to show, not only that the thing you insured for has happened, but you have suffered loss over and above any excess. The sum insured represents the maximum figure which the. The key rule is that the insured can never be indemnified more than their loss. Castellain v preston [1883] 11 qbd 380 (ca), the insured signed a contract for the sale of a house, the house was destroyed by a fire. The risk had passed by this point to the purchaser. So, recovery from the insurance wouldn"t be appropriate as it would have overcompensated the individual. Chapman v pole [1870] 22 lt 306 cockburn cj: You must not run away with the notion that a policy of insurance entitles a man to recover according to the amount represented as insured He can only recover the real and actual value of the goods .
