Protected No Claims Discount

PROTECTED NCD

If you have accumulated 4 or more years No Claims Discount (NCD) and have no more than one claim in the past five years, you can protect your NCD by paying an additional premium. This cover only applies where your Policy Schedule shows ‘Protected NCD’ as being purchased.

Protected NCD does not protect the overall price of your policy. The price of your policy may increase following an accident even if you were not at fault, however it does ensure your no claims discount is not reduced, further impacting your renewal premium.

If you have no more than 2 claims in any 5-year period, your NCD entitlement will be unchanged and your NCD will not be reduced. If you make 2 claims in any 5-year period your NCD protection will end, meaning that the third and any further claims will reduce your NCD as detailed in Table 2 below.


HOW YOUR NCD WILL BE AFFECTED IN THE EVENT OF A CLAIM, IF YOU HAVE NOT PURCHASED PROTECTED NCD

The table below provides an overview of how your NCD will be affected at renewal if a claim is made against your policy that does not have Protected NCD cover:

Table 1: NCD at the next renewal following:

NCD at the start of your policy1 Claim2 Claims3 Claims
0000
1000
2000
3100
4200
5+310

HOW YOUR NCD WILL BE AFFECTED IN THE EVENT OF A CLAIM IF YOU HAVE PURCHASED PROTECTED NCD

The table below provides an overview of how your NCD will be affected at renewal if a claim is made against your policy that does have Protected NCD cover and assuming you have had no claims in any of the previous five years:

Table 2: NCD at the next renewal following:

NCD at the start of your policy1 Claim2 Claims3 Claims
4UnchangedUnchanged2
5+UnchangedUnchanged3