Compensation vs Indemnity - What's the difference?
compensation | indemnity |
The act or principle of compensating.
That which constitutes, or is regarded as, an equivalent; that which makes good the lack or variation of something else; that which compensates for loss or privation; amends; remuneration; recompense.
* Hallam
* Burke
The extinction of debts of which two persons are reciprocally debtors by the credits of which they are reciprocally creditors; the payment of a debt by a credit of equal amount; a set-off.
A recompense or reward for some loss or service.
An equivalent stipulated for in contracts for the sale of real estate, in which it is customary to provide that errors in description, etc., shall not avoid, but shall be the subject of compensation.
The relationship between air temperature outside a building and a calculated target temperature for provision of air or water to contained rooms or spaces for the purpose of efficient heating. In building control systems the compensation curve is defined to a compensator for this purpose.
(legal) An obligation or duty upon an individual to incur the losses of another.
Repayment.
(legal) The right of an injured party to shift the loss onto the party responsible for the loss.
A principle of insurance which provides that when a loss occurs, the insured should be restored to the approximate financial condition occupied before the loss occurred, no better, no worse.
As nouns the difference between compensation and indemnity
is that compensation is the act or principle of compensating while indemnity is an obligation or duty upon an individual to incur the losses of another.compensation
English
(wikipedia compensation)Noun
(en noun)- (Emerson)
- The parliament which dissolved the monastic foundations vouchsafed not a word toward securing the slightest compensation to the dispossessed owners.
- No pecuniary compensation can possibly reward them.