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Jul 30, 2010

What is IDV in Motor Insurance?

The Insured’s Declared Value (IDV) of your vehicle is deemed to be the ‘SUM INSURED’ for the purpose of tariff calculation and it is usually fixed at the commencement of each policy period for each insured vehicle. The IDV is fixed on the basis of the manufacturer’s listed selling price of the particular model of the vehicle at the commencement of the policy or at the time of renewal of the policy. IDV is treated as the ‘Market Value’ throughout the policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loss (CTL) claims. IDV is calculated by adjusting the current manufacturer’s Listed Selling Price (*see below) of the vehicle with depreciation percentage listed in the table below:
VEHICLE
% OF DEPRECIATION
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%
For vehicles that are obsolete and aged over 5 years, the IDV will be the value agreed between Bajaj Allianz General Insurance (insurer) and you (insured). *Manufacturer’s Listed Selling Price = Invoice Value + Taxes, excluding Registration and Insurance charges

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