Mr. Smith was traveling in the cold wintry night by his car when suddenly his car started skidding in the ice and he realized that he has lost complete control over his vehicle. As his car was skidding towards another car which was standing a few yards away he was happy about two things: his car was actually moving slowly which will prevent any major damage to his health and the other he was protected against the financial loss which was bound to come when his car crashed into the other one.

We commonly have the tendency to write cheques every month for our indemnity policies which includes our home indemnity, auto insurance, property insurance, shop insurance, liability assurance, commercial property insurance and so on. Sometimes we even feel frustrated when we think that the company’s promise to pay the money when we really need them is turning out to be uselessly as our life is running smooth and hassle free. But, you can never predict when the untoward incident may occur. To escape from the helplessness and the graveness of such situations the indemnity acts as our savior.

You can simply say that indemnity is the payment of a small predictable amount of money (“premium”) to protect against a larger unpredictable expense (“loss/claim”). Thus, with the purchase of the insurance you can transfer the risk attached to the property, vehicle or other materials and equipment from yourself to the insurance company from whom you are purchasing the indemnity for a stipulated fee.

With the uncertainty of life, people tend to buy all sorts of assurance now a days ranging from auto insurance, medical insurance to property assurance. Property insurance furnishes protection against myriads of risks to property which includes fire, theft and also some weather damage. This insurance involves specialized forms of assurance such as fire insurance, flood assurance, earthquake insurance, home indemnity or boiler insurance. Fire indemnity is generally included on almost every assurance policy because property assurance has historically originated from fire insurance. The insurance sounds pretty vital isn’t it? Actually, it is. Protecting yourselves and your loved ones from any untoward incident is the way towards a prosperous and happy life ahead!