Indemnity is Immunity from Responsibility for Damages

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Indemnity
Indemnity in the legal sense means immunity from responsibilities for damages. This immunity is attained by a contractual agreement between two parties on a particular issue. In the agreement, one party decides to pay for any future damages or losses caused by the second party on agreed issues. In other words, the second party will not be held responsible for any damages or losses. Indemnity will be paid in terms of monetary benefits or by repairs/replacements. The indemnity payments will be made in accordance with the contractual agreement. A characteristic example is an insurance contract between the insurer and the insured. In this contract, the insurer agrees to compensate the insured for any damages or losses on agreed issues. The insured in turn pays premiums to the insurer. Indemnity in clinical research is a contractual agreement between the Sponsor and the investigation site to protect the site from claims of non-negligent harm because of participation in clinical research. The indemnity will also provide coverage to patients against any untoward events.
Compensation
Compensation is an organised practice which involves providing monetary and non-monetary benefits to affected person. In compensation, the affected person is directly compensated for damages or loss incurred. There is generally no insurance policy or insurer involved in compensation. Monetary compensation in clinical research is a well-known practice. Monetary compensation is provided to the study participants for number of reasons such as gratitude payment for their involvement in the development of pharmaceutical product and also for achievement of required patient recruitment number within specified time period. Study participants are compensated...

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...licy is required to cover the risks associated with the mismanagement of service provider such as CRO. It is particularly important in cases of complete trial undertaking by the CRO. This policy will cover the claim for patient injury directed at the Sponsor. However, as directed by the circumstances, there should be provisions of counter claiming by the Sponsor against the service provider.
Conclusions
Considering the nature of clinical trials, indemnity and compensation are very important elements for protection of the rights and welfare of the study participants. It is a common practice to provide monetary compensation to the study participants for their time and also for discomfort associated with trial related procedures. It is very important to include detailed indemnity and compensation policies in all the contracts related to the conduct of a clinical trial.

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