Claim may be settled on the basis of an indemnity bond
An advertisement may have to be placed in a newspaper if the amount to be paid is high
Both A & B
None of the above
Answer is Right!
Answer is Wrong!
The correct answer is C. Both A & B.
If a policy document is lost, the policyholder may need to provide an indemnity bond to the insurance company. This is a document that guarantees that the policyholder will repay the insurance company if they make a claim on the policy. The insurance company may also require the policyholder to place an advertisement in a newspaper to notify potential claimants that the policy has been lost. This is done to protect the insurance company from fraudulent claims.
Here is a brief explanation of each option:
- Option A: Claim may be settled on the basis of an indemnity bond. An indemnity bond is a legal document that guarantees that the policyholder will repay the insurance company if they make a claim on the policy. The insurance company may require the policyholder to provide an indemnity bond if their policy document is lost.
- Option B: An advertisement may have to be placed in a newspaper if the amount to be paid is high. The insurance company may require the policyholder to place an advertisement in a newspaper to notify potential claimants that the policy has been lost. This is done to protect the insurance company from fraudulent claims.
- Option C: Both A & B. If a policy document is lost, the policyholder may need to provide an indemnity bond to the insurance company and place an advertisement in a newspaper to notify potential claimants that the policy has been lost.