Insurance: market value vs. indemnity value?

[amwt]

What's the difference? In either case how is the compensation sum related to the so called value stated by the insured at the time of obtaining the policy?

[Ocean]

It isn't really to be honest.

Insurers will offer the market value for a vehicle.

The principal of indemity is to put the insured back in the same financial position after a loss as he was before it.

Does that help?

O