Which of the following types of insurance is usually excluded from the principle of indemnity?

Explanation

The principle of indemnity in insurance refers to the principle that an insured party should be compensated for the actual financial loss suffered, up to the limit of the policy coverage. The purpose is to restore the insured to the same financial position they were in before the loss occurred.
While most types of insurance, including fidelity guarantee, fire, marine, and motor vehicle insurance, typically operate based on the principle of indemnity, life insurance is an exception. Life insurance is not based on indemnity because it involves the payment of a predetermined sum (death benefit) upon the insured's death, rather than compensating for a financial loss directly. Life insurance provides financial protection to the beneficiaries of the insured, and the amount paid out is not necessarily related to the actual financial loss suffered.