What is the difference between indemnity and non-indemnity insurance?

Technically, an indeminty policy will PAY YOU BACK, after you’ve paid the initial outlay. The opposite of that, would be a “pay on behalf of” type policy.

Indemnity insurance provides compensation against the actual costs that are incurred by the insured, non-indemnity insurance pays a predetermined fixed amount of compensation on occurrence of a claim, regardless of the costs incurred.
Indemnity specifies that the insured should not collect more than the economic value of a loss. The insured should be restored to approximately the same financial position that existed before the loss occurred.
Non-indemnity insurance is a type of insurance where the insured and insurer agree on the amount that the insurance company will pay if something happens to you. Insurance from AFLAC would be an example. They agree to pay you a specified sum if you are hospitalized or are diagnosed with cancer irregardless of costs that you may or may not incur. Another example is life insurance.

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