Under the ABI Personal Effects Contribution agreement, how is the no claims discount on a non-motor policy usually treated?

The no claims discount on a non-motor policy under the ABI Personal Effects Contribution agreement is typically treated in a way that maintains its benefit for the policyholder. When a payment is made to another insurer due to a claim under this agreement, it usually does not affect the no claims discount. This is important for policyholders as it allows them to maintain their discount status despite having made a claim.

This treatment is designed to ensure that policyholders are not penalized for claims that are not exclusively their fault, which helps encourage continuous coverage and trust in the insurance system. Maintaining the no claims discount helps foster customer loyalty and supports a more favorable claims experience overall.

In contrast to this, the other options would imply varying levels of penalties or alterations to the discount, which are not in line with the agreement's intentions.