Question

How much interest does a life insurance company need to pay on the claim amount in case of a delay in processing the claim for reasons other than improper identification?

a.

1% above the bank rate

b.

2% above the bank rate

c.

5% above the bank rate

d.

Prime lending rate of the insurer

Posted under IC38 Life Insurance Agent Exam

Answer: (b).2% above the bank rate Explanation:In case of a delay in processing a claim for reasons other than improper identification, the life insurance company shall pay interest on the claim amount at a rate which is 2% above the bank rate prevalent at the beginning of the financial year in which the claim is reviewed by it.

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Q. How much interest does a life insurance company need to pay on the claim amount in case of a delay in processing the claim for reasons other than improper identification?
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