With reference to the indemnity, consider the following statements: It protects the manufacturers from any potential civil-legal liability from being sued by people for any unforeseen complications. It is provided only to vaccines. Which of the statements given above is/are correct?

Q. With reference to the indemnity, consider the following statements:
1. It protects the manufacturers from any potential civil-legal liability from being sued by people for any unforeseen complications.
2. It is provided only to vaccines.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A

Notes:

In simple terms, indemnity means security against a loss or other financial stress. This is commonly used in insurance contracts. So, indemnity can be provided on multiple fronts, not only to vaccines. (Statement 2 is incorrect).

Recently, the Indian Government has planned to offer indemnity to the financial bidders of Air India Ltd.

In legal terms, It protects the manufacturers from any potential civil-legal liability from being sued by people for any unforeseen complications. (Statement 1 is correct).

Source: India to Offer Indemnity to Flag Carrier Bidder Over Cairn Claim

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