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Is Higher IDV Better in Bike Insurance?
Mar 31, 2021

Is Higher IDV Considered Better in Bike Insurance?

If you have a two-wheeler, it is imperative that it will lose its value as time passes. Plus, you may never know when a mishap occurs, and your vehicle gets damaged. Hence, it is mandatory for you to get an insurance policy for it.   Apart from the accidental damage claim, NCB, and others, IDV is a critical aspect that needs your utmost attention while buying or renewing bike insurance online. Some of you must be thinking about what is IDV in 2 wheeler insurance, right!   Well, keep reading to know better!  

What is IDV in 2 wheeler insurance?

Let’s deal with the biggest frog first. The term IDV is expanded as Insured Declared Value. The IDV is the sum affixed by the insurance company that will be paid to the insured person if his or her two-wheeler faces complete damage in a road accident or gets stolen.   Basically, the IDV is the market value of the vehicle, and it decreases with each passing year. The calculation of the IDV is done based on various factors like:  
  • The age of the bike or any other two-wheeler
  • Type of fuel the bike runs on
  • Make and model of the two-wheeler.
  • City of registration
  • The registration date of the bike
  • The insurance policy terms
  As your two-wheeler loses its value after each year, it is necessary for you to pay attention to the IDV insured in your policy; here is a table showing the depreciation rate based on the number of years:    
Time Period Depreciation (in %)
<6 months 5
>6 months and < 1 year 15
>1 year and < 2 years 20
>2 years and < 3 years 30
>3 years and < 4 years 40
>4 years and < 5 years 50

How crucial is it to arrive at the right IDV?

During purchase or renewal of vehicle insurance online, it is highly necessary to arrive at the right IDV for security in the long run.  

Is higher IDV better?

For the most part, yes, a high IDV is better as it ensures higher value for your bike if it gets damaged. However, in some cases, you need to be careful with it.   For instance, if your bike is older and you opt for a high IDV, you may not get it. If you do, you will have to pay a higher premium, and if in case your bike gets damaged, based on the age, you will get a lower IDV. When the claim is processed, the depreciation value might decrease the IDV though you have chosen a higher amount.   So, is higher IDV better? It depends on multiple factors that you need to consider before betting on an amount. The major factors are the age and the model of the two-wheeler.  

Is lower IDV better?

If you are getting to pay less premium for a lower IDV, it is not like you got the best deal on your insurance. Just as higher IDV can be bad in the long run, settling at a lower IDV can also lead to financial losses.   For instance, if your bike is two years old and you settle at an IDV, that could have been after three or four years. You did this to save on insurance premiums. Now, if your bike gets damaged due to any reason, you will get a low IDV. This will waste more of your investment than that you saved on low premiums.  

What is IDV value for bike insurance & how to determine it?

As we are well aware of what is IDV in insurance, let’s jump on to how to determine the value of the IDV of your vehicle. As listed above, there are many factors based on which the IDV of a bike is determined. Although here are some tips that you need to know:  
  • The general formula for IDV calculation is, IDV = (Manufacturer’s price - Depreciation) + (Accessories not in the listed price - Depreciation)
  • If the vehicle is more than five years old, the IDV can be decided via the agreement between the insured person and the insurer.
  • If your vehicle is five years old, the amount of IDV is decided based on the condition of the vehicle (how much service it requires and the condition (various body parts of the bike).
  Note: Higher the age of the vehicle, less will be the IDV of it.   This is all about What is IDV value for bike insurance!!  


  1. Does IDV matter in bike insurance?
Yes, IDV is one of the most critical factors in the insurance policy. Most of the people don’t consider it, but it is necessary to scan while buying or renewing the policy.  
  1. Does the IDV value for my bike decrease each year?
Yes, the IDV value of your bike decreases no matter how well the condition of your bike is. Based on the time period of use, the IDV value depreciates and can reach up to 50% in five years.  
  1. Can I do something about the depreciation of my policy?
Depreciation decreases the value of your bike year by year. But, you can prevent this by choosing a depreciation cover. It ensures the complete return value of your bike no matter how old it is.

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