A reward for not claiming under a policy. For each motoring claim-free year it means a progressive reduction on the following year’s motor insurance premium until a four/five maximum year has been reached. Maximum discounts are in the range 60-65 per cent but if a claim occurs the insured drops back down the scale. Once the insured has four years’ NCD he can pay extra for a protected no claim bonus. The bonus is then guaranteed provided there are no more than two claims in any period of five years. NCDs are available from some household insurers