Avoid Major Financial Losses When Buying a New Bike or Car: Pankush Chhabra

If you are thinking of buying a new bike or car, then do not forget to keep this in mind. It can save you significant amounts of money. Pankush Chhabra, a finance influencer recently shared a story about his friend's experience, highlighting a common mistake that can cause to considerable financial loss.

A Costly Mistake: The Story of Pankush's Friend

Pankush's friend purchased a Mahindra car worth Rs. 20 lakh with insurance with damage cover worth Rs. 1 lakh. He paid the full amount. However, due to his lack of awareness about the insurance rule, If he had known the rule before he would have gotten a discount of 50%.

Understanding the No Claim Bonus (NCB)

The rule that Pankush shares is No Claim Bonus (NCB). NCB is a reward given to policyholders who do not make any insurance claims during a particular policy year. If you have sold your first car or bike within the last five years and have not made any claims, the insurance company gives you up to 50% discount on your premium. This discount continues until you make a claim.

How NCB Works?

The No Claim Bonus applies to comprehensive motor insurance policies. Here's how it can benefit you:

• Discount Range: Policyholders with a claim-free record can get from 20% to 50% discount on premiums.
• Transferable Benefit: The NCB is tied to the policyholder, not the vehicle. It means you can transfer the benefit when you switch to a new car or bike.
• Significant Savings: Over the years, maintaining claim-free records can result in substantial savings on your insurance costs.

Conditions for NCB Cancellation:

It is crucial to note that the NCB benefit is available only on comprehensive motor insurance policies. You cannot avail of the NCB if you have standalone own-damage insurance or third-party insurance.

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A post shared by Pankush Chhabra | Finance (@socialpankush)

Financial Tips:

• When buying insurance, ask about no claim bonuses and make sure you are getting the maximum possible discount if you have a claim-free record.
• Remember, NCB benefits apply only to comprehensive motor insurance policies.
• Follow finance influencers like Pankush Chhabra for valuable tips that can help you save money and avoid financial loss.

By remembering these points, you can ensure that you are choosing the most cost-effective option when buying a new bike or car.