We operate a system which is very similar to how No Claims Discount works on motor insurance. If a new policyholder who has never owned a plane insures with us they start with a 0% NCD allowance, although they may be entitled to a 10% introductory discount if they have been claim free for 5 or more years. So long as there is no claim then over the next 3 renewals the No Claims Discount increases to 12.5%, 15% and 20% maximum respectively.

If a new policyholder joins us who has held an aircraft policy elsewhere and has been claims free then we put them on the level of the NCD scale that they would have been if they had been insured with us over the period. For example a policyholder who held a claim free policy for 2 years would get a 15% discount.