The NCD is calculated as follows: if the insured does not make any claims in the first year, they will only have to pay a 20% discount on the premium in the second year (a 20% no-claim discount), and a 30% discount on the premium in the third year (a 30% no-claim discount). The no-claim discount increases by 10% each year, accumulating to a maximum of 60% in the fifth year.