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Section 124 of Indian Contract Act, 1872
From the Act
A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a " contract of indemnity".
A contracts to indemnify B against the consequences of any proceedings which C may take against B in respect of a certain sum of 200 rupees. This is a contract of indemnity.
English Law vs Section 124 of Indian Contact Act, 1872
In England, Indemnity covers not only loss arising from the conduct of promisor or third party, but also accidental loss. However, definition in Section 124 of the Indian Contract Act is narrower and seems to exclude Indemnity as a cover for accidental loss.
An Insurance Contract is a contract under English Law and saves the promisee harmless from loss caused by accident. However, an Insurance Contract is only a contract of indemnity under Indian Law also.
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