NFU Mutual has announced that it will once again be paying a bonus to customers renewing insurance policies this year.

It is the 10th year running that the rural insurer will pay a bonus, and the overall cost is expected to be about £85m.

The level of bonus policyholders will receive (paid as a discount at renewal) depends on the length of time they have insured with the company. First renewals will receive a 6% bonus, with rates increasing by 1% increments to 10% for fifth and subsequent renewals. This includes car, home and contents, business, horse and travel policies.

NFU Mutual’s Group chief executive said more than 0.75m members had general insurance policies with the firm and about 95% of customers renewed policies every year. “We are delighted to be rewarding our loyal members. Many of our customers are from families who have been with us for generations.”

One such customer is Iain Green from Garmouth near Fochabers in Moray. The business farms mixed cereals, pigs, sheep and beef cows and also transports bulk produce across the UK. Mr Green will receive the full 10% bonus.

“I think it’s remarkable that NFU Mutual can pay out this bonus despite the difficult economic times we find ourselves in. Rising fuel costs and government duties in the transport sector are making business tough – this is certainly a welcome boost,” he said.