Savings bank account
Bank interest + 2%
5.00%
10%
Answer is Right!
Answer is Wrong!
The correct answer is: C. 5.00%
The insurer shall pay interest at the rate of 5.00% per annum on the amount of the claim from the date of the claim to the date of payment. This is in accordance with the Insurance Act, 1938.
Option A is incorrect because the interest rate for a savings bank account is typically lower than 5.00%.
Option B is incorrect because the interest rate for bank interest is typically higher than 5.00%.
Option D is incorrect because the interest rate for 10% is higher than the maximum interest rate allowed by law.