Syed Aquib Kazim, L.L.M Scholar at Faculty of Law, Aligarh Muslim University, Aligarh
ABSTRACT
When one party suffers as a result of the other party losing money or things, and the other party promises to compensate him if he loses his money or things in the near future, that commitment to pay for the damaged goods or money is known as indemnity. Indemnity is a legal act that compensates for and protects against loss. Contract of Indemnity is defined under Section 124 of the Indian Contract Act of 1872 as a contract in which one party pledges to rescue the other party from damage caused by the guarantor's own activity or the action of any other person. Contract of indemnity under Indian law is a narrow concept because the matters in which human beings are involved which is prescribed under Section 124 of the Indian Contract Act 1872. In general, the notion of a contract of indemnity is more expansive in English law than it is in Indian law because under English law, all issues are taken into consideration that are connected to someone else's actions as well as events or accidents, such as a fire or an act of God. The Law Commission in its 13th Report opinioned that the Indian Law of Indemnity as defined in Section 124 of the Indian Contract Act is insufficient because it does not define the various aspects of indemnity, and the same was said about Section 125 of the Act, where the Indian Law again falls short in addressing the rights of the promissee. A need has been felt at times that the Sec.124 and Sec.125 of the Indian contract Act 1872 should be revised so as to encompass various types of indemnity such as losses caused by natural phenomena, accidents, and so on, as well as implicit indemnity as a concept.
