The IDV of a Two-Wheeler and Everything You Should Know About It.

Insured Declared Value (IDV) is the primary determinant of how much money you may claim for repairs to a damaged car. It is essentially the maximum sum insured established by the insurer in the case of a car theft or loss due to an accident. To put it another way, IDV is the current market worth of your automobile.

This is the amount you will be reimbursed by the insurance if your bike is stolen or entirely destroyed in an accident.

How is an IDV determined?

The IDV of a car is computed using the manufacturer's selling price. In this context. the selling price is the amount at which the vehicle is sold at the time of policy commencement/renewal adjusted for depreciation. To be clear any cash paid for registration or insurance on a two-wheeler is not included in an IDV.

The following table shows the depreciation timeline for a two-wheeler:

Time Period

Annual Premium

Not older than 6 months

5%

Exceeding 6 months, but less than a year

15%

Exceeding 1 year, but less than 2 years

20%

Exceeding 2 years, but less than 3 years

30%

Exceeding 3 years, but less than 4 years

40%

Exceding 4 years, but less than 5 years

50.00%

What Happens to a Vehicle Older Than Five Years?

If your vehicle is more than 5 years old, its IDV is mostly determined by its serviceable condition and the status of its body pieces.

Even though your bike is an old model, it might have an IDV. This is dependent on the deal you reach with your insurance carrier.

What is the significance of IDV?

A decent IDV is critical if you do not want to face a significant loss in the event of an accident. If the applicant agrees insurers will normally aim to give an IDV that is 5% to 10% less than the current market value.This would significantly reduce the policy's premium payment.

To summarise, before settling a claim an insurer will always evaluate the age and condition of your car. So, keep the aforementioned criteria in mind to achieve the greatest settlement for yourself.

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