📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    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