The Indemnity Clause is relevant for the below case:
ChargeBacks where a Resident makes a payment, Money reaches the Association and then Resident asks for the refund from the Payment Gateway (hence ADDA) claiming that the Merchant (association) has not provided the service for which it is collecting the Money, or the Resident is actually not Member of Association and his card has been used by someone else. (high possibilities for Residents who have moved out after settling a long-pending maintenance/other bills. )
In such case, the Association must furnish adequate documents to refute the claim or refund the money. However, if the dispute is not resolved in a timely manner, RBI mandates the payment to be done from ADDA's reserves immediately to the Claimant. Hence, the risk lies heavily on ADDA.
Hence the Indemnity Clause.