I want know Difference between Indemnity Bond & Affidavite ?
This query is : Resolved
Pratik Nitin Vyas
(Querist)
20 November 2009
I want know Difference between Indemnity
Bond & Affidavite ?
If is there is any Definition than please provide with the section if any with the examples please.
Bond & Affidavite ?
If is there is any Definition than please provide with the section if any with the examples please.
20 November 2009
An affidavit is an affirmation on oath. You are swearing that what you are stating is absolute truth and not simply to the best of your knowledge and belief. It is a fact.
An indemnity bond is more of a surety that you are giving indemnifying or assuring the person that he shall be duly compensated of possible losses occurring to him by your actions or another person's action.
Recently after government made gift of property taxable, exemption is given in case donor is a relative. In addition to the Gift Deed, government wants an 'Affidavit' from Donor stating relationship with the receiver. This is like getting a confirmation of donor that he is brother or brother in law etc. He cannot lie when under oath. Therefore they ask you to affirm by signing before the magistrate, notary public or Indian consulate.
Classic example of indemnity is your general insurance policy that is indemnifying you up to a limit from losses arising due to occurrence of a specific event.
An indemnity bond is more of a surety that you are giving indemnifying or assuring the person that he shall be duly compensated of possible losses occurring to him by your actions or another person's action.
Recently after government made gift of property taxable, exemption is given in case donor is a relative. In addition to the Gift Deed, government wants an 'Affidavit' from Donor stating relationship with the receiver. This is like getting a confirmation of donor that he is brother or brother in law etc. He cannot lie when under oath. Therefore they ask you to affirm by signing before the magistrate, notary public or Indian consulate.
Classic example of indemnity is your general insurance policy that is indemnifying you up to a limit from losses arising due to occurrence of a specific event.
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