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No claims discount protection, in the boat insurance glossary

Boat insurance term, area: Premium

No claims discount protection is a clause that keeps the discount in place after the first claim instead of cutting it back. The thinking behind it is that a long run of claim free years should not be wiped out by one unlucky evening. Picture an owner with a clean record who misjudges a crosswind while berthing, touches a mooring pile and ends up with a scrape along half the hull. Without such a clause, reporting the damage costs the excess and then several years of a higher premium until the discount has been earned back. Clauses of this kind usually apply once.

What to check: Two questions for your own contract: after how many claim free years does the protection begin, and does it apply once or at every claim? And which payments count as a claim at all, for example a tow, assistance at sea or an inspection after touching the bottom with no damage found?

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