Question

What interest rate is applicable if a claim is ready for payment but cannot be made due to improper identification of the payee?

a.

Fixed interest rate of 5%

b.

Bank rate prevalent at the beginning of the financial year

c.

Prime lending rate of the insurer

d.

Market interest rate

Posted under IC38 Life Insurance Agent Exam

Answer: (b).Bank rate prevalent at the beginning of the financial year Explanation:If a claim is ready for payment but cannot be made due to improper identification of the payee, it shall earn interest at the rate applicable to a savings bank account with a scheduled bank, effective from 30 days following the submission of all papers and information.

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Q. What interest rate is applicable if a claim is ready for payment but cannot be made due to improper identification of the payee?
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