Why N.C.D.

Abstract

This paper was originally written as a Note for the Institute of Actuaries Students' Society on ‘N.C.D. Systems in Motor Insurance’. This topic was one of nineteen non-life topics on which Notes were requested by the Students' Society in 1973, a different member of the Society being responsible for each topic. The Notes were not expected to give the results of research work along previously unexplored lines. Rather, they were intended as a survey of existing knowledge in each subject—including references to any useful literature—which could be understood by and be of general interest to members of the profession who had little or no experience of non-life work.Following a request from the Manchester Actuarial Society, it was decided to revise and expand the original Note to make a paper more suited for discussion. No Claim Discount (N.C.D.) is one of the more controversial areas of motor insurance, being a topic on which the motorist is liable to hold strong and emotive views from time to time. As now written the paper takes a critical look at N.C.D. systems, as well as outlining their basic features.