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Changes to ​No Claims Discount Protection

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New rules for selling No Claims Discount (NCD) Protection cover.

The Competitions & Marketing Authority (CMA) Private Motor Insurance Order comes into force from August 1st 2016 and introduces new rules for selling No Claims Discount (NCD) Protection cover.

A study carried out by the CMA highlighted that NCD Protection is one of the most commonly purchased add-ons and whilst consumers in the study considered it to be a very valuable benefit when asked what benefit it provided many misunderstood the level of protection provided.

The CMA Order states that customers must be given detailed information relating to their NCD Protection cover.  As a result we are required to supply you with the following information which you will find included within your quotation and renewal packs.

  • A statement that NCD protection does not guarantee that premiums will not change if a claim is made

  • A table showing the effect of any claims on the earned NCD years

  • A table showing the insurer’s average discount for each year of NCD

  • The implied price of NCD Protection cover.  This is the difference in the retail price between purchasing and not purchasing NCD Protection.

By providing you with this information this will enable you to assess the benefits that NCD Protection provides, compared to the cost.

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