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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the maximum time period insurers have to process a death claim under a life insurance policy as per IRDAI (Protection of Policyholders' Interests) Regulations, 2017?

View solution

Q. Under what section of the Insurance Act, 1938 is a policy of life insurance protected from being called into question after three years from the policy's issuance date?

View solution

Q. What happens if the insurer detects incorrect statements or material facts suppression in a death claim?

View solution

Q. What forms are typically submitted for a death claim in a life insurance policy?

View solution

Q. When is a death claim considered "early" in a life insurance policy?

View solution

Q. What does a death claim typically include in a life insurance policy?

View solution

Q. What is a death claim in a life insurance policy?

View solution

Q. What happens to the policy contract when a maturity claim is paid?

View solution

Q. What is the purpose of a critical illness rider in a life insurance policy?

View solution

Q. When can a life insurance policy be surrendered?

View solution

Q. What is the surrender value of a life insurance policy?

View solution

Q. What are survival benefit payments in a life insurance policy?

View solution

Q. Why is it important to educate policyholders about conditional assignments in critical illness benefits?

View solution

Q. What happens to the insurance cover under a life insurance contract when a death claim is paid?

View solution

Q. How are critical illness claims typically ascertained in life insurance?

View solution

Q. How is a surrender value payment different from other claim payments in life insurance?

View solution

Q. How is a maturity claim different from other types of claims in life insurance?

View solution

Q. How are critical illness claims ascertained in life insurance?

View solution

Q. What triggers the event of surrender value payments in a life insurance policy?

View solution

Q. What makes the process of ascertaining maturity claims and money-back instalment claims straightforward?

View solution
View All MCQs on IC38 Life Insurance Agent Exam

Recommended Subjects

Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Automotive Engine Design

Embark on a thrilling exploration of Automotive Engine Design, where the intricacies...

IC85 Reinsurance Management

Gear up for success in the Insurance Institute of India (III) examination with IC85...

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Renewable Energy

Explore the sustainable future of energy with our Renewable Energy category. Dive...