Question

In case of delay by the insurer in processing a life insurance claim, at what rate should interest be paid on the claim amount?

a.

Equal to the bank rate

b.

1% above the bank rate

c.

2% above the bank rate

d.

5% above the bank rate

Answer: (c).2% above the bank rate Explanation:If there is a delay in processing a life insurance claim, the insurer should compensate the policyholder for the inconvenience caused. Paying interest on the claim amount at a rate 2% above the bank rate ensures fair compensation for the delayed settlement, encouraging insurers to expedite the claims process.

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Q. In case of delay by the insurer in processing a life insurance claim, at what rate should interest be paid on the claim amount?

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