LETS TALK!

Let us call you back. Just share your number for a call back in less than 15 minutes

+91
We can’t proceed without your mobile number. Help us?
Sigh. We need the reason for call back to pick the right person for the job. Help us?
OR

Is it super urgent? Call us on our Toll Free numbers

BTW, we respond to email queries with lightening fast speed. Send email instead?

THANK YOU FOR CHOOSING COVERFOX!

Someone from the team will get back to you ASAP!

HAVE AN AMAZING DAY!

Oh! Just in case you still need our Toll free

1800 209 9970
Also schedule a callback Also send an email
THANKS!

Your Claim Assistance request has been registered with us.

We will contact you before 11am tomorrow.

If its an emergency, for immediate assistance please feel free to contact our Customer Support Unit on 1800 209 9970
image title
TWO WHEELER INSURANCE

Know Your Two Wheeler's IDV

Meeta Sabnis Meeta Sabnis 01 March 2016

Multiple technical jargons such as IDV of the two-wheeler can confuse you and hinder your two-wheeler insurance buying experience. Find out what IDV really is and how it affects your coverage.

image title

IDV or Insured Declared Value is the maximum Sum Assured fixed by the insurer that is provided on theft or total loss of two-wheeler in the event of an accident. IDV in a lay man’s language is the current market value of the two-wheeler. In case your two-wheeler suffers a total loss in an accident, or is stolen, IDV is the compensation that the insurer will provide to the policyholder.

Calculation of IDV

The IDV of the two-wheeler is calculated on the basis of manufacturer’s listed selling price of the two-wheeler proposed for insurance at the commencement of insurance/renewal and adjusted for depreciation (as per the schedule given below). However, the registration and insurance costs are not included in the IDV. The IDV of the accessories which are not factory fitted are calculated separately at an extra cost if insurance is required for them.

The Depreciation schedule of a Two Wheeler is as following:

Age Of The Vehicle % Of Depreciation For Fixing IDV of The Two-Wheeler
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

However, if for depreciation beyond five years, a two wheeler’s IDV is determined on the basis of its serviceable condition and the state of its body parts. For various components of different materials, the IDV is adjusted accordingly and an overall average determines the two wheeler’s IDV. The IDV for a two wheeler older than 5 years and an obsolete model of a two wheeler may be determined by mutual agreement between the insurer and the insured. Some companies have a practice of referring to surveyors for arriving at IDV, which leads to additional cost borne by the insured.

The Importance of IDV

As IDV is the amount that the policy holder is compensated in case the two wheeler suffers damages beyond repairs or if it is stolen, it's extremely important to settle on a rational value. Ideally, it should be close to the market value of your two wheeler so that in situations of theft or damages, you get compensated accordingly. Insurers may offer to reduce IDV by about 5% to 10% which could be chosen by customer.

IDV and Two Wheeler Insurance Premium

IDV is one of the most important factor which determines your two wheeler insurance premium. A lower IDV would attract a lower rate of premium and vice-versa. Thus, while comparing quotes from different insurers for your two wheeler ensure that you maintain a constant IDV value this will help you choose the right policy.

Get lowest quotes for Two Wheeler Insurance

Avail upto 60% discount on Premium.

Please enter a valid phone number
Thanks! We will get back to you soon.

I hereby authorize Coverfox to communicate with me on the given number for my Insurance needs. I am aware that this authorization will override my registry under NDNC.

Meeta Sabnis
Written by Meeta Sabnis
Her mantra in life is to dream, and dream until you turn them into reality. A neurotic Kajol fan, Meeta loves spending time with her gorgeous twins, ensuring a childhood they’ll be proud of. Bargain hunting, crazy dancing and romancing alphabets are some of her other cravings. She’s currently a Content Writer at Coverfox.