Confused over protected no claims discount.

fat-pudding

Quentin wrote: »

You won't get a year added for the year in which the claim was made (if your claim was a "fault" one)

The paperwork in front of me says that they did add another year for the year in which I made a claim?

Quentin

If the claim was a fault claim, then they made a mistake!

fat-pudding

Oh well, not going to worry me as the other paperwork says they only recognise 5 years NCB anyway...

adamc260

InsideInsurance wrote: »

The problem with NCD is that there is no industry standard and the fact there are commonalities but no standards probably makes things worse.

Whilst for the vast majority of insurers if you have 5+ NCD and have a claim you'll drop down to 3 years it may not be universal. Certainly some insurers have simply taken two years from what your total is so if you have 14 years NCD you'd go down to 12 (CGU's platinum service used to do this) and there is nothing to stop an insurer offering this again (though economically its unlikely to stack up)

Brilliant Insurer then, you can have 4 claims and still walk away with 6 years NCD

The only way for that to be viable is making each year of NCD worth far less... otherwise you'll never be penalised other than rates increasing due to increased risk.

InsideInsurance

Hence my comment on viability.

They maxed the discount out at 5 years but you quickly got to the point that NCDP was no longer worth buying because you had so much inherent protection built in. Needless to say post merger with NU they changed the terms.

That isnt to say someone somewhere some day decides actually it was a good idea and reintroduces it. The trouble with NCD is the lack of a standard thus you can have widely differing practices.