Comprehensive Insurance – Part 02 (Discounts)

There are a few discounts offered in Comprehensive policy which are :

  1. Company Discount.
  2. N.C.B. (No Claim Bonus) Discount.
  3. Occupation & Membership Discount.
  4. Voluntary Deductible.
  5. Anti Theft Device Discount.

Company Discount :

Every insurer offers different % of discount on all brand & model which is called Company Discount.  This discount % varies from insurer to insurer for every particular brand & model from year to year.  Its higher in the initial years & reduces gradually & subsequently.

N.C.B. (No Claim Bonus) Discount :

N.C.B. (No Claim Bonus) Discount is nil/zero in the first year & increases gradually & subsequently – if there is no claim taken over period of time.  Once a claim is filed in a particular year, it starts from nil/zero in the subsequent year.  Discount slab is as under :

N.C.B. Slab

Occupation & Membership Discount :

People involved in Low Risk Occupations (like Scientists, Doctor, Engineers, Teachers, Nurses, Pilots etc.) can avail of Occupation Discount as statistically people in these professions exercise less risky driving behaviors than those engaged in other jobs.

Military Discounts can be availed by Army Personnel while Employees of certain companies can get benefit in form of Corporate Discounts.

Being a member of certain Professional Organisation, Auto Clubs (like A.A.I.), Credit Union (like Banks) etc. entitles you to pre-specified Membership Discounts.

Some companies also offer Age Discount.

Voluntary Deductible :

If you opt to bear a certain amount of loss on every claim you make, then that is called Voluntary Deductible & it entitles you to certain discount in your premium.

Voluntary Deductible

There is a Compulsory Deductible in every policy, the amount of which varies depending upon vehicle type.  If you opt for Voluntary Deductible then you got to bear the loss of Voluntary Deductible + Compulsory Deductible in every claim you make.

Anti Theft Device Discount :

If the vehicle is fitted with Anti Theft Devices approved by A.R.A.I. (Automobile Research Association of India) then Vehicle Owner is entitled for discount of 2.5% of O.D. Premium or max. of Rs. 500/-.


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