Penalties consists of indemnity for the loss or punitive damages imposed by the courts, restitution of the property or loss, injunctive relief precluding future conduct or action, and other remedies, including possession of the property or an accounting of the property entrusted.

(i) Limit of an Insurers’ liability under a fidelity bod or surety bond. (ii) Amount by which an insured’s recovery is reduced because of a Policy provision such as a coinsurance clause. See Also: “Coinsurance.”
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UK: 1. A punishment like a fine or monetary payment. It is against public policy to allow a person to insure against fines but legal defence cover is available under liability and legal expenses insurances. Penalties along with liquidated damages arising under contract are commonly excluded under liability policies. 2. The nominal sum payable by an obligor, an insurer, on breach of a condition in a bond.
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MEDICAL,USA: 1. Punishment established by law. 2. Under Medicare, the amount added to the patient’s monthly premium for Medicare Part B or for a Medicare drug plan if the individual does not join when first able. For Medicare Part D, this higher amount is deducted as long as the patient has Medicare.

The maximum value the insurance company is liable for, according to a Fidelity Bond.