What is the purpose of indemnity to hirers in commercial motor insurance?

In commercial motor insurance, the purpose of indemnity to hirers fundamentally revolves around providing financial protection to those who rent or lease vehicles. This indemnity is designed to ensure that, in the event of a loss or damage to the hired vehicle, the hirers can recover their financial position without experiencing a significant economic disadvantage. Such protection includes covering the costs associated with physical damage to the vehicle caused by accidents, theft, or other unforeseen events.

Indemnity to hirers confirms the insurer's commitment to honor the financial obligations arising from such incidents, thus allowing hirers to be assured that they will not suffer a total loss of investment in the vehicle they are using for business operations. This assurance is particularly vital in commercial contexts, where the vehicle is not only a significant asset but also essential for carrying out business tasks.

The other options do not align with the core purpose of indemnity in this context. Covering excess premium payments, extending coverage to international travel, or providing free maintenance service do not directly address the primary intent of ensuring financial compensation for losses suffered by the hirers.