From memory, the system I used did not reduce the NCD for pending claims at renewal. The NCD is only reduced once the claim was settled as a fault claim. I think this is right, as you can only imagine the number of complaints a company would receive if NCD was reduced and only reinstated when non fault entered. To suddenly have to pay a higher premium just because a non fault claim is in process, would not be acceptable to most people. I might be wrong, which is why I suggest you phone your Insurers.
Is this true? If so, it must have been implemented at 1700 yesterday as I've never heard of that before. What system were you using?!?
RE Renewal; they would be more inclined to reduce the no claims discount as their payout is concerned. What companies do you know that do not increase premium/decrease NCD allowance at renewal with a claim pending????
No insurance company in the UK will release no claims bonus or state 'No claims bonus allowed' whilst a claim is pending. It never has in the history of NCD and never will. It will, hopefully, be a speedier process to settle but as your post goes on to point out other liabilities must be considered and the reserve may only be estimated.