A deductible is the amount of a covered loss that the insured must bear before the insurer pays the remaining eligible amount. It may be fixed, percentage-based, or applied according to a stated formula. Some policies apply it to each claim, while others use a different aggregation basis.
For a hypothetical Nepalese motor claim of NPR 80,000 with an applicable NPR 10,000 deductible, payment would be NPR 70,000 before other adjustments. A larger deductible can lower premium but increases the customer's share of loss. Check how multiple deductibles and sub-limits interact.