Calculator Inputs
Example Data Table
| Scenario | Base premium | Years | Claims | Scale | Approx. NCD |
|---|---|---|---|---|---|
| Urban commuter | ₨50,000 | 4 | 0 | Standard | 40% |
| Family vehicle, one claim | ₨62,000 | 5 | 1 | Standard | 35% (step-back) |
| Protected discount | ₨62,000 | 5 | 1 | Standard | 40% + loading |
| Low-risk profile | ₨45,000 | 7 | 0 | Conservative | 45% |
| High-tier market | ₨55,000 | 8 | 0 | Aggressive | 60% |
Formula Used
1) Adjusted NCD years: If protection is off, each claim steps back two years. AdjustedYears = max(0, Years − 2×Claims).
2) NCD tier: NCD% = min(Scale[AdjustedYears], Cap%).
3) Premium build-up:
- AfterNCD = Base × (1 − NCD%).
- AfterOther = AfterNCD × (1 − OtherDiscount%).
- Loaded = AfterOther × (1 + RiskLoading%) × (1 + AddOnsLoading%).
- ProtectionCharge = Loaded × ProtectionLoading% (only if enabled).
- Subtotal = Loaded + ProtectionCharge + Fees.
- Total = Subtotal × (1 + TaxRate%).
Baseline savings compare the same loadings and fees, without discounts.
How to Use This Calculator
- Enter your base premium from a quote or last renewal.
- Set your claim-free years and recent claim count.
- Choose the discount scale closest to your market.
- Switch on protection if you want to preserve your tier.
- Add discounts, loadings, fees, and tax for your scenario.
- Click Calculate to view totals above the form.
- Export the breakdown using CSV or PDF buttons.
Discount Tiers and Caps
No-claim discounts typically rise in steps as claim-free years build. Many schedules start at 0% and reach 50%–70% at higher tiers. With a base premium of 50,000, a 40% tier reduces the discounted premium to 30,000 before other adjustments. This calculator lets you switch scales to match different market tiering.
Claim Step-Back Effects
Insurers often apply a step-back after a claim, lowering the earned tier. A common illustration is two years removed per claim. For example, 6 claim-free years with one recent claim can be treated as 4 years, reducing the tier from 45% to 40% on a standard schedule. Use the adjusted-years badge to verify the applied tier.
Protection Loading Trade-Off
Discount protection can preserve the tier even when claims occur, but usually adds a loading, often 3%–8% of the post-loading premium. If your savings from keeping a higher tier exceed the protection charge, protection may be economical. The calculator shows both the protection charge and the final total, helping you test different claim scenarios.
Fees, Taxes, and True Cost
Fixed fees and taxes can dilute the visible impact of a discount. A 1,500 admin fee added after rating changes the effective discount rate, especially on smaller premiums. If tax is 16%, an extra 1,000 in subtotal increases total by 160. Review the breakdown table to see where costs accumulate and why totals differ from simple percentage reductions.
Renewal Forecasting with Exports
Renewal planning is easier when scenarios are documented. Use exports to compare baseline totals against discounted totals, then share the PDF during renewal discussions or store the CSV for budgeting. Running multiple scenarios with varying tiers, loadings, and fees can reveal which inputs drive the largest changes and where negotiating effort is most valuable. today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today today
FAQs
1) What is a no-claim discount?
A no-claim discount is a percentage reduction applied when a policyholder remains claim-free for a defined period. The percentage usually increases by tier and may be capped.
2) How do claims affect the discount in this tool?
If protection is off, the calculator uses a step-back illustration of two years per claim. This reduces adjusted years and can move you into a lower discount tier.
3) When does protection make sense?
Protection can be useful when a single claim would drop a high tier and the saved discount is larger than the protection loading. Compare “Estimated total” against “Baseline” to judge value.
4) Why is my total not just base minus NCD?
NCD applies first, then other discounts, then risk and add-ons loadings. Fees are added, and taxes are applied on the subtotal. Each layer changes the final premium.
5) Can I use this for different policy types?
Yes for estimation. Enter the base premium from any quote and adjust fees and tax to match the product. Discount schedules vary by insurer, so treat results as planning guidance.
6) What number should I enter as the base premium?
Use the premium before discounts and before taxes from a quote or prior renewal. If you only have a total, remove taxes and known fees first to approximate the base.