1. The act of compensating or the state of
being compensated. (一般) 補償、彌補、賠償
Peter gave me $500 as compensation
for the knife he lost.
2. something, such as money, given or
received as payment or reparation, as for a service or loss. (一般) 賠償金、補償金
Did you get any compensation
when you were dismissed from your job?
Indemnity is a sum paid
by A to B by way of compensation for a
particular loss suffered by B.
When a country has been defeated
in war, it sometimes has to pay an indemnity to the winners.