IDV Calculator for Two Wheeler
IDV Calculation for Two Wheeler
What Is IDV In Two-Wheeler Insurance?- Insured Declared Value or IDV in two-wheeler insurance is the total value of the insured’s vehicle that is decided by an insurer to compensate the insured in case of damage or total loss of the vehicle. Simply put, IDV is the maximum sum insured fixed by an insurance company to compensate you (the policyholder) with, in case of a misfortune event like theft or total loss due to an accident. IDV in two-wheeler insurance is calculated after taking into consideration the manufacturer's listed selling price and then the depreciation.
Why Is IDV In Two-Wheeler Insurance Important?
As discussed before, IDV is the amount that the insurance company compensates in case of damage or total loss of your two-wheeler. So, knowing the rational IDV helps you make an informed decision when purchasing a two-wheeler insurance. Note that lower the IDV, lower the premium you will be required to pay for your two-wheeler insurance policy. But the wise decision is to choose the IDV closest to your two-wheeler’s market value. This ensures fair compensation if you make a claim in case of theft or damage.
How Is IDV In Two-Wheeler Insurance Calculated?
IDV in two-wheeler insurance is not calculated on the basis of the premium you pay for your policy. Instead, it is calculated as per the market value of your vehicle at the time of policy start date, that keeps on changing with time. Also, it takes depreciation into consideration. So, it is advised to get your vehicle insured as soon as possible after purchase in order to get a high IDV.
The following table shows how depreciation schedule of IDV in two-wheeler insurance:
Depreciation Percentage Deducted to Calculate IDV
Two-wheeler not more than 6 months old
More than 6 months, but not more than a year
More than 1 year, but less than 2 years
More than 2 year, but less than 3 years
More than 3 year, but less than 3 years
More than 4 year, but less than 2 years
Note: IDV for vehicles more than 5 years is decided by mutual agreement between the insurance company and the insured.
Factors Affecting IDV In Two Wheeler Insurance
Listed below are some factors that affect the IDV of your two-wheeler:
- Age of the two-wheeler to be insured
- Two-wheeler’s make, model, and variant
- Two-wheeler’s registration date
- City of registration
- Fuel type
- Insurance policy term
Difference Between IDV and Premium
People often get confused between IDV and Premium. However, these two are related but different concepts. IDV refers to the market value of your bike, whereas premium is the amount which you pay to get your bike covered under an insurance plan.
Premium is directly proportional to IDV. If the premium rate in your two-wheeler insurance policy is low that means a lower IDV. Thus, people tend to believe, lower the IDV, the better it is. However, that’s not the case. A lower IDV is not beneficial because at the time of a claim settlement, it will result in a lower claim amount.
Now that you know how important it is to know the right IDV of your two-wheeler, you should also know that you can calculate it by using an IDV calculator online. IDV calculator is an online tool that determines the market value of your two-wheeler and also gives you an idea of the premium you will be required to pay to own the policy.
In case of any doubt or query related to IDV in two-wheeler insurance, you can get in touch with the customer care executives at InsuranceDekho.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
What is your bike's brand?
Find Right Bike Insurance Quotes by Bikes Body Type
- View Hero Splendor Plus Insurance Quotes
- View TVS Apache RTR 160 Insurance Quotes
- View Bajaj Pulsar 150 Insurance Quotes
- View Bajaj Pulsar 125 Neon Insurance Quotes
- View Honda Shine Insurance Quotes
- View Hero Passion Pro Insurance Quotes
- View Hero HF Deluxe Insurance Quotes
- View Hero Super Splendor Insurance Quotes
- View TVS Jupiter Insurance Quotes
- View Honda Activa 6G Insurance Quotes
- View Honda Dio Insurance Quotes
- View TVS NTORQ 125 Insurance Quotes
- View Suzuki Access 125 Insurance Quotes
- View Hero Pleasure Plus Insurance Quotes
- View Yamaha Fascino 125 Insurance Quotes
- View Honda Activa 125 Insurance Quotes
- View Yamaha YZF R15 V3 Insurance Quotes
- View Bajaj Pulsar NS200 Insurance Quotes
- View TVS Apache RR 310 Insurance Quotes
- View Bajaj Pulsar 220 F Insurance Quotes
- View Bajaj Pulsar RS200 Insurance Quotes
- View KTM RC 200 Insurance Quotes
- View Bajaj Pulsar NS160 Insurance Quotes
- View KTM RC 125 Insurance Quotes
- View Royal Enfield Classic 350 Insurance Quotes
- View Royal Enfield Bullet 350 Insurance Quotes
- View Royal Enfield Meteor 350 Insurance Quotes
- View Honda Hness CB350 Insurance Quotes
- View Bajaj Avenger Cruise 220 Insurance Quotes
- View Bajaj Avenger Street 160 Insurance Quotes
- View Jawa Perak Insurance Quotes
- View Jawa 42 Insurance Quotes
Explore Bike Insurance
Bike Insurance Companies Reviews & Ratings
IDV in Bike Insurance FAQ
Why is the right amount for IDV important?
It is important to have a correct IDV as it affects both your premium amount as well as your claim amount. A lower IDV will result in a lower payout at the time of a claim settlement whereas a higher IDV will unnecessarily put a strain on your pocket as it will result in a higher premium. Thus, it is important to get the correct IDV.
How should I calculate the IDV of my bike?
You can simply visit InsuranceDekho, enter your two-wheeler’s registration number to get the IDV of your bike. If you don’t remember the registration number of your two-wheeler, you can select its Make, Model and variant to get the IDV and premium quotes instantly.
Will it be beneficial if I declare an incorrect value of my IDV?
Declaring an incorrect IDV value is not beneficial in the future. At the time of making claims, it will affect the amount you will be getting on the damage/losses incurred to your two-wheeler. The Claim amount is calculated on the basis of the IDV value.
Does the value of IDV decrease?
Yes, the IDV of your bike decreases with time due to wear and tear.
Bike Insurance News
- Bike Insurance: How to Change a Bike Insurance Pol...
If you are not satisfied with your bike insurance policy, th...28 January 2021
- Tips to Follow When Riding a Bike With a Pillion R...
If you want to know tips to follow when riding a bike with a...28 January 2021
- Safety Tips to Ride a Bike in Foggy Conditions
Read this post to find safety tips to ride a bike in foggy c...27 January 2021
- Significance of Wheelbase in Two-Wheeler
Significance of wheelbase in two-wheeler explained in this p...27 January 2021
- Everything You Need To Know About Bike Insurance I...
Have you ever wanted a handy guide of all the main points ab...26 January 2021
- Two-Wheeler Sanitization Checklist
Keeping all your surroundings clean and sanitised is of utmo...29 November 2020
- Important Items In A Biker’s Riding Kit
There may be many instances where you have taken a trip on y...29 November 2020
- Top Bikes with High Resale Value in India
There are many reasons you may want to invest in a new bike ...03 December 2020
- Significance of Cubic Capacity (CC) in Motorcycles
Not many know of what Cubic Capacity (CC) refers to in bikes...30 November 2020
- How to Transfer RC from One State to Another?
Read all about the process of how to transfer the registrati...01 December 2020