What is the purpose of a "No Claim Bonus" in motor
insurance?
ATo penalize drivers with a history of accidents.Correct AnswerIncorrect Answer
BTo reward drivers with a good driving recordCorrect AnswerIncorrect Answer
CTo increase premiums for all driversCorrect AnswerIncorrect Answer
DTo discourage the use of private vehiclesCorrect AnswerIncorrect Answer
ENone of the aboveCorrect AnswerIncorrect Answer
Solution
The correct answer is B. To reward drivers with a good driving record. No Claim Bonus is a discount offered by insurers to policyholders who have not made any claims during the policy period.
