Why Should You Consider IDV While Buying Bike Insurance?

Written by Sharad Bajaj

Updated On Sep 01, 20212 min read

IDV or Insurance Declared Value is an important aspect of your bike insurance which represents the market value of your bike and depreciates over time. Read about why it is important to consider IDV when buying bike insurance.

There are many factors to consider when buying your bike insurance and deciding which insurance policy is right for you. These include the bike insurance premium to be paid, your comfort with the company, any add ons, and much more. Perhaps one of the most important to be considered is the IDV of your bike or two-wheeler, which is something that will impact your policy greatly. Let’s read all about this and discover its importance.

What is IDV?

IDV stands for Insurance Declared Value. It is the assessed market value of your bike or two wheeler as determined by the bike insurance company. It therefore depreciates over time to accommodate for usage, wear and tear, and the decreasing market value for your bike and its parts.

Why is IDV Important While Buying Bike Insurance?

The following are the reasons that IDV is important:

1. Maximum Sum Assured: As IDV represents the market value of your bike or two wheeler, it is also the maximum sum assured that you would be entitled to in case of theft or damage beyond repair, for example, in an accident, of your vehicle. Therefore, any bike insurance claim settlement that you would be entitled to from your insurance company would not exceed the IDV amount.

2. Proportionate to Insurance Premium: As the IDV amount represents the maximum amount that could be payable to you by the insurance company in case of damages or theft to your vehicle, your insurance premium is directly proportional to it. This means that the lower the IDV amount, the lower the premium, and vice versa.

These are the reasons why it is absolutely crucial to consider IDV when purchasing your bike insurance. The IDV is the way to ensure that you have infallible financial coverage when it comes to your vehicle. This is because if the IDV is inaccurate, you would be in considerable difficulty. If it is too low, you would not receive enough compensation at the time of claims. If it is too high, you would be paying an unnecessarily high premium. Thus IDV is especially important for used vehicles as it represents the market value of the vehicle. Therefore, it is of utmost importance to consider IDV when buying bike insurance.

Takeaway

Of the many aspects that impact your insurance premium, IDV is perhaps the most important. It is crucial to consider it when purchasing your insurance for your bike or two wheeler. This is due to the fact that it represents the maximum amount that would be payable to you in case of theft or damages, and further, it would be directly proportional to the premium that you would have to pay and is thus considerably important.

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 Sharad Bajaj

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Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.