Right and Duties of Indemnified and Indemnifier ?

INDEMNIFIER

An indemnifier is the party who promises to compensate another party (the indemnitee or indemnity holder) for a loss, damage, or liability incurred as per contract.

The major right of indemnifier are :- 

a. The indemnifier can recover any amount paid by the indemnified person without legal necessity.

b. Right to benefit of remedies after paying compensation, the indemnifier can use the legal rights and        remedies of the indemnified against third parties.

c. The indemnifier may take reasonable steps to prevent unnecessary loss or damage.

d. The indemnifier is not liable if loss done by indemnified intentionally.

e. Right to deny if Indemnity holder worked negligently.

The major duties of indemnifier are :-

a. Duty to compensate Loss 

b. Duty to pay damages of indemnity holder

c. Duty to pay legal costs paid by indemnity holder

d. Duty to pay settlement amount as par law

e. Duty to act in good faith and fulfill the act honestly without delay.

INDEMNITY HOLDER 

An indemnity holder is the person who is protected from loss in a contract. It is also called the indemnitee or the indemnified.

The major rights of indemnity holder are :-

a.      Indemnity holder can claim for compensation for damages suffered from the transaction.

b.     The indemnity holder can recover any or all of the amounts of compensation under the contract.

c.      He/ she can recover all damages which he/ she may be compelled to pay in any suit in respect of any matter to which the promise to indemnity applies.

d.     All the cost spent on the case filed or defended by him in connection relating to indemnity.

e.      He/ she can recover all the cost of legal action, if it becomes necessary to initiate such an action for a failure to pay the amount mentioned in all the above causes.

The major duties of indemnity holder are :-

1. Duty to act prudently

2. Duty to mitigate possible loss

3. Duty to do legal procedure honestly in lawsuit

3. Duty to comply with the indemnifier’s instructions

5. Duty to help indemnifier to recover loss from third parties.