Also means
indemnity
Usage Note
Indemnización is formal language for financial compensation paid for damages or dismissal (indemnización por despido, severance pay). The plural indemnizaciones is regular. The verb is indemnizar. In everyday speech compensación is sometimes used, but indemnización is the legal standard.
Examples
"Recibió una indemnización por el accidente laboral."
Natural Translation
She received compensation for the workplace accident.

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