What amount will Mr. Green receive for his total loss under an indemnity basis policy?

In the context of indemnity insurance, the purpose of the policy is to ensure the insured party is compensated for their loss without profiting from the situation. The amount Mr. Green will receive for his total loss under an indemnity basis policy should reflect the actual loss he has incurred, rather than a predetermined or arbitrary amount.

Typically, the assessment for indemnity can be based on the actual cash value of the items lost, considering depreciation, market value, or replacement cost, depending on the specific terms of the insurance policy. Therefore, if Mr. Green’s total loss has been calculated and verified to amount to £500, this is the appropriate amount he would receive under the indemnity policy, as it accurately compensates him for his losses without exceeding this amount.

In this instance, the other amounts mentioned do not represent the total loss he has incurred based on the terms of his policy. Therefore, they would not be the correct amount for Mr. Green's claim under an indemnity basis.