This document discusses contracts of indemnity under Indian law. It defines a contract of indemnity as one where one party promises to save the other from losses caused by the promisor or a third party. It provides examples of indemnity contracts like motor, marine, and fire insurance. The document identifies the indemnifier as the party who promises indemnification and the indemnity holder as the party whose losses are covered. It outlines the rights of an indemnity holder when sued, including damages paid, costs incurred, and sums paid in compromise if following the indemnifier's orders. Finally, it notes the contract act is silent on the rights of the indemnifier.

1. BY: Rishikant
Sharma
CONTRACT OF INDEMNITY

2. Contract of indemnity
 A contract by which one party promises
to save the other from loss caused to
him by the contract of the promisor
himself, or by the conduct of any other
person, is called a “contract of
indemnity”. [section 124].
 For Example – A contracts to indemnify
B against the consequences of a certain
sum of 200 rupees. This is contract of
indemnity.

3. PARTIES TO CONTRACT OF INDEMNITY
 INDEMNIFIER: A Person who promises to
indemnify.
 INDEMNITY HOLDER: A Person whose loss is to
be indemnified.
 EXAMPLE:
• Motor Insurance
• Marine Insurance
• Fire Insurance
Life Insurance is not the contract of

4. RIGHTS OF INDEMNITY-HOLDER WHEN
SUED
The promisee in a contract of indemnity, acting within the
scope of his authority, is entitled to recover from the
promisor.
 All damages which he may be compelled to pay in any suit
in respect of any matter to which the promise to indemnify
applies;
 All costs which he may be compelled to pay in any such
suit, if in bringing of defending it, he did not contravene the
orders of the promisor, and acted as it would have been
prudent for him to act in the absence of any contract of
indemnity, or if the promisor authorized him to bring or
defend the suit;
 All sums which he may have paid under the terms of any
compromise of any such suit, if the compromise was not
contract to the orders of the promisor, and was one which
it would have been prudent for the promise to make in the
absence of any contract of indemnity, or if the promisor

5. RIGHTS OF INDEMNIFIER
 The contract act is silent about the rights of
indemnifier.