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1. What is an Indemnity Agreement ? 

The definition of indemnification, according to the dictionary, is "protection against possible damage or loss, especially a promise of payment, or the money paid if such damage or loss occurs." It serves as a safeguard against, or compensation for, loss, among other things. This is where a claim for indemnity emerges; in such a circumstance, there are two parties: one who accepts or promises to reimburse or incur the loss; this person is known as the "indemnifier," and the other who suffers the loss is known as the "indemnity holder" or "indemnified." This is how the loss in such instances steadily moves from one person to the next. 

2. Why is it important? 

The major requirement that frequently leads to indemnity is "any action or conduct of the indemnifier or any other person, let's say a third party who may or may not be a party to the contract due to which the indemnity holder has suffered a loss or any damage." Section 124 of the Act only applies in circumstances where there has been a loss or damage that has been caused by the action or conduct.