A form of experience rating in which policyholders are allowed a discount from the basic premium according to a scale that depends upon the number of years since the last previous claim. In practice, the systems often do not claims where the policyholder was not at fault (“allowed claims”) and will usually still provide some discount if a claim is made after a previously long claim free period. It is used most often in Motor Insurance and occasionally in other classes such as Householders, Personal Accident, Health, Shopkeepers, Office Umbrella etc.