Vidyalelo
Commerce · Q874

Insurance

Graduate and Post Graduate · Commerce · question 874

Q874

If the policyholder dies within grace period –

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

Answer: Option C

Solution

Answer: Option C
Solution:
If the policyholder dies within grace period 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.