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What Is IDV In Two Wheeler Insurance?


Written by Sumit Arora

Updated Aug 09, 2021

Read this article to find out the meaning and significance of the Insured Declared Value (IDV) in bike insurance.

IDV is nothing but an abbreviation for the Insured Declared Value of your two-wheeler. This is a concept used to calculate the current market value of your two-wheeler. The insured declared value is calculated by subtracting the depreciation cost from the manufacturer's declared selling price. This article will explain what IDV is and why it is important in the context of bike insurance.

What Is IDV In Two Wheeler Insurance?

What Is IDV In Terms of Your Bike Insurance?

The IDV (Insured Declared Value) is the total or maximum claim amount that an insurer will pay a policyholder for the two-wheeler in the event of extensive and irreparable damage. The amount that the insurance company will pay for your insurance claim is determined by a number of factors, the most important of which is the bike's current market value.

Your bike's value begins to depreciate the moment you purchase it. If your bike's IDV is low, your car insurance premium and claim amount will be low as well. IDV is calculated by insurance companies based on a few details about the bike, such as its purchase date and model, accessories, and the number of times it has been serviced, among other things.

Your insurance premium will decrease as your bike ages.  This is primarily due to wear and tear on auto parts as they are used over time. This wear and tear will reduce the system's efficiency, resulting in depreciation. The depreciation reduces the bike's current market value, which reduces the amount you receive for your claim. As a result, your premium will be reduced as well.

You may also like to read:- Documents Required for Bike/Two-Wheeler Insurance Renewal  

What Are The Factors That Determine The IDV of Your Bike?

The following are some of the factors that go into calculating your bike's Insured Declared Value -

  • The Bike's Age

Because of the increasing depreciation, the IDV decreases with age. This is primarily due to the depreciation of the two wheeler's auto parts, which reduces the IDV.

  • The Car's Make and Model

The make and model of the car will have a significant impact on the IDV, depending on the maintenance and repair costs. As a result, owning an expensive bike will result in a higher premium than owning an economy class bike.

  • Registration City

A two-wheeler registered and running in an urban area carries a higher risk and has a lower IDV than a bike registered and running in a suburban area. This is primarily due to the increased risk of collision or theft in urban areas.

Importance of IDV For Your Bike Insurance

Insured Declared Value is a major factor in determining your bike insurance premium at the time of purchase and renewal. It is also a major factor in determining the insurance claim amount in the event of extensive damage to your two-wheeler that is beyond repair. The following are the situations in which IDV is taken into account -

  • When Buying Or Renewing A Bike Insurance Policy

The IDV of your bike will have a direct impact on your bike insurance premium when purchasing or renewing your policy. A high IDV means you'll have to pay a higher insurance premium. A low IDV, on the other hand, will result in a lower premium.

  • While Obtaining The Settlement For Your Insurance Claim

The IDV plays a significant role in determining the amount you receive when you make a claim on your bike insurance in the event of extensive and irreparable damage. If the IDV of your bike is high, the insurance company will pay you a higher amount. On the contrary, if your IDV is low, you will receive a lower amount.

Also Read:- How To Renew Bike Insurance Online

Take Away

The Insured Declared Value has a significant impact on both your bike insurance premium and the amount of your claim. Make certain that you correctly calculate the IDV for your two-wheeler to be aware of the processes that involve its use. Making informed decisions is the key to owning a bike insurance policy that is both affordable and comprehensive. Ride carefully!


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.


Written by Sumit Arora

Sumit is an insurance industry veteran with more than 20 years in the industry. Sumit is a frequenRead More

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