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Declaration Value of Your Two Wheeler Explained

Published On Oct 26, 2020 8:22 AM By InsuranceDekho

Know declaration value of your two wheeler in detail.

When getting your bike or two wheeler insured, there are many factors to consider that will impact the premium that you would be required to pay. One of these is the Insurance Declared Value (IDV) of your two-wheeler. Let’s read all about this.

What is Declaration Value of Your Two Wheeler?

When it comes to insuring your two wheeler, it is mandatory by law to have insurance at least up a third party insurance policy. This covers any damages caused to a third party involved in an accident with your bike. However, it is more advisable to avail of comprehensive bike insurance, which also includes own damages, that is injury caused to you or damages caused to your vehicle, as well as damages caused in accidents that do not involve a third party, or occurrences such as natural disasters or calamities.

This is where IDV comes in. The premium that you would pay for a comprehensive insurance policy would be influenced greatly by the IDV of bike as part of the coverage would be in terms of repairs to your vehicle in time of accidents. The IDV of your vehicle represents its market value. It depreciates over time and would be influenced by the age of your vehicle at the time of raising a claim.

Choosing an IDV

You are able to select an IDV that is different from the market value. This will impact your insurance premium in different ways. In general, the higher the IDV is, the higher the premium you will have to pay. However, this would also have an impact on your claim amounts.

  • Choosing a Lower IDV: Selecting an IDV lower than market value will reduce your premium amount. However, when raising a claim the compensation amount would also be correspondingly reduced and you would likely have to pay a lot from your pocket. Thus, it is a very risky choice.
  • Choosing a Higher IDV: This will lead to higher compensation at the time of claims, as IDV refers to the sum total that an insurance company can reimburse you for in case of damage. However, it would also result in you paying a higher premium.

It is thus best to select an IDV that is close to the market value and this way you would be able to pay an accurate premium amount and get the right compensation at the time of claims.


The declaration value of your two wheeler is therefore one of the most impactful factors in determining the premium that you would pay to your insurance company, as well as the compensation you would receive at the time of claims. It is important therefore to select an accurate IDV for your vehicle.

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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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