Question

    What is the purpose of a "No Claim Bonus" in motor

    insurance?
    A To penalize drivers with a history of accidents. Correct Answer Incorrect Answer
    B To reward drivers with a good driving record Correct Answer Incorrect Answer
    C To increase premiums for all drivers Correct Answer Incorrect Answer
    D To discourage the use of private vehicles Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The correct answer is B. To reward drivers with a good driving record. No Claim Bonus is a discount offered by insurers to policyholders who have not made any claims during the policy period.

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