28-1 ACTUAL LOSS

In the case of non-indemnity insurance, the claimants recover the amount stated in the policy.1 In this respect insurance contract law is in line with general contract law which pays careful attention to clear contract clauses on the matter.2 In the case of indemnity insurance, the claimants recover the amount of their actual loss3 and this chapter is concerned with the assessment of actual loss. They may not recover more than their actual loss,4 even if the sum insured is greater (below, 28-1A). Moreover, it also follows that the amount recoverable from the insurer is reduced by any indemnity for the same loss already obtained from a third party.5