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:

Age Two-wheeler

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.

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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.

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#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.