📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Consider the following statement: I. NCB is

      given to the insured and not to the insured vehicle. II. On transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. III. The original owner can, however, use the NCB on a new vehicle purchased by him. Which of the above statement is correct about No Claim Bonus (NCB)?
      A I only Correct Answer Incorrect Answer
      B II only Correct Answer Incorrect Answer
      C I and II only Correct Answer Incorrect Answer
      D I and III only Correct Answer Incorrect Answer
      E I, II and III Correct Answer Incorrect Answer

      Solution

      NCB is given to the insured and not to the insured vehicle. Hence, on transfer of the vehicle, the insurance policy can be transferred to new owner but not the NCB. The new owner has to pay the difference on account of NCB for the balance policy period.The original owner can, however, use the NCB on a new vehicle purchased by him.

      Practice Next
      More Insurance Awareness Questions
      ask-question