The no-claim bonus helps to lessen the moral hazard problem. With a bonus at stake for making

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The no-claim bonus helps to lessen the moral hazard problem. With a bonus at stake for making a claim, a driver has a stronger incentive to be careful and try harder to avoid accidents.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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