This is a discount added to your policy each year based on your claims history. The No Claim Discount rises annually by 5% to a maximum of 60% if no claims are made. (Please see your Policy Book for more information on NCD).
Your current NCD level is shown on your Policy Schedule. This is how the NCD level is calculated:
Where nobody covered on the policy makes a claim - The NCD for the policy is increased by one level at the following policy renewal date until level 10 is reached
For each claim made on the policy - The NCD for the policy is reduced by two levels at the following policy renewal date for each claim made until level 0 is reached.
These are the NCD levels and their discount percentage on a basic premium rate:
Level 0 = 0%
Level 1 = 10%
Level 2 = 20%
Level 3 = 25%
Level 4 = 30%
Level 5 = 35%
Level 6 = 40%
Level 7 = 45%
Level 8 = 50%
Level 9 = 55%
Level 10 = 60%
If you make a claim that causes your NCD to reduce at renewal, there may be an option to pay this back. We can then recalculate your premium so you can continue to benefit from the NCD.