n NISM Certifications
X NISM Series X
Medium

Rohini, planning to switch to a new insurer for her car, can reduce premiums by transferring her No-Claim Bonus and opting for a higher deductible, as both are permissible under insurance rules.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    She should transfer the ‘No-Claim’ bonus to the new insurance company

  2. B

    She should opt for higher deductible as she is a very careful driver

  3. Both of the above

    Correct answer

  4. D

    None of the above as no claim bonus is non-transferrable and the deductible is not decided by the insured

Why this is the answer

Transferring NCB and choosing a higher deductible are standard ways to lower premium costs, and both options are available.

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