Niketan has taken a loan of Rs. 1 crore from the bank. His father, Mr.
Shyamlal, is the guarantor for the loan. Can the bank take an insurance plan
in the name of Mr. Shyamlal?
Select the correct answer from the list below.
No, the bank has insurable interest only on Niketan's life.
Yes, the bank can take an insurance plan to the extent of the guarantee amount.
No, the bank does not have any insurable interest on Shyamlal's life.
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