Vidyalelo
Commerce · Q124

Insurance

Graduate and Post Graduate · Commerce · question 124

Q124

If a policyholder dies within the grace period, then

A.
The claim will be rejected
B.
The claim will be paid subject to policy conditions
C.
The claim is payable after deducting the premium
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
If a policyholder dies within the grace period, then the claim is payable after deducting the premium. As per the rules, if the death of the policy holder occurs on the due date of the premium payment or during the grace period, still the policy is valid and the beneficiaries will get the sum assured. But after deducting the the unpaid premium for the current year.