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IDV of Vehicle
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By now you would have understood that IDV is the acronym for Insured Declared Value. The IDV in bike insurance is the complete value of the insured’s vehicle. This is decided by the insurance company to compensate in case of any damage or complete loss of the vehicle.
The Insured Declared Value is the maximum sum insured that is fixed by the bike insurance company to provide compensation to the policyholder in case of an untoward incident. The Insured Declared Value in bike insurance is calculated taking into account the selling price of the manufacturer listed followed by the depreciation.
*Standard T&C apply
INSURE YOUR BIKE IN 2 MINUTES
The Insured Declared Value is the sum that the bike insurance policyholder will be paid as compensation in case the insured bike suffers damage beyond repair or is stolen. Hence, it is crucial to settle on the rational value.
In all likelihood, it needs to be close to the market value of the bike, so that in case of any unfortunate circumstance, the compensation is done accordingly. A lower Insured Declared Value will attract a low premium and vice-versa. IDV not only enables you to determine the value of the bike but also lets you decide the bike insurance premium that you will end up paying. Here are some key reasons that justify the importance of IDV in bike insurance:
The IDV determines the value of the bike aptly. The value depends upon different factors such as the bike’s CC, the make and model of the bike, the city of registration, and so forth. So, ensure to state the right IDV of the bike.
The two wheeler insurance premium too is dependent on several factors such as the type of bike, make and model, cc, claim history, and the Insured Declared Value.
In case any loss/damage is incurred to the insured bike, then IDV is the maximum sum that the policyholder is entitled to receive. There are times when individuals give out incorrect IDV just to lower the insurance premium rate. Doing this is a disadvantage, as during the bike insurance claim a lesser value will be received. And chances are that the amount may not be sufficient to meet the repair costs.
Note: For more details, read the policy wordings carefully.
What is the Insured Declared Value (IDV) Calculator for a Bike?
The IDV calculator for two wheelers is an online tool that enables you to calculate the present market value of the vehicle. Read more
The IDV calculator for two wheelers is an online tool that enables you to calculate the present market value of the vehicle. To calculate IDV of bike important details such as the make and model, location, registration, personal details, etc. needs to be provided. All of this information helps to generate the IDV of the bike and insurance premium.
To make an informed decision, you may compare the bike insurance premium from various insurance companies in India online. The key thing that needs to be taken into account is that the higher will be the IDV of the bike, the higher is going to be the premium too. The bike insurance premium is directly related to the IDV.
The IDV is calculated at the commencement of the policy tenure or during the renewal. It is adjusted with depreciation. With the two wheeler insurance IDV calculator, you can not only analyze the market value but also the bike insurance premium. In case you look forward to insuring the accessories which aren’t factory fitted, then the IDV for it is calculated separately. Ensure to inform your two wheeler insurance company timely.
The IDV calculator for 2 wheelers also determines the apt claim payout sum when the expense of repairing damage is above the decided percentage of the sum insured or stolen.
*Standard T&C apply
How to Calculate IDV in Two Wheeler Insurance?
By now, you would have understood the IDV in bike insurance is calculated on the premise of the market value of the bike. Read more
By now, you would have understood the IDV in bike insurance is calculated on the premise of the market value of the bike. As the policy begins it keeps changing and the depreciation is also included while Insured Declared Value is calculated.
To calculate the IDV of 2 wheeler rightly, it is highly recommended to buy the bike insurance policy for the bike as you buy the bike to have the highest IDV. The calculation of IDV is simple and not complex.
Showroom or Present Market Value of the Vehicle minus the depreciation on its parts
It is to be noted that the road tax, insurance, and registration cost are not included in the Insured Declared Value.
*Standard T&C apply
Insured Declared Value for Two-wheeler Above 5 Years of Age and More
The age of the two-wheeler is related to the depreciation rate which will be calculated on the bike Read more
The age of the two-wheeler is related to the depreciation rate which will be calculated on the bike. As the age of the bike increases, the depreciation rate on it too will increase. It simply implies, as the bike’s age increases, its value will decrease.
For a bike that is aged 5 years or above, the depreciation will be calculated on the premise of its parts and serviceable condition. The IDV gets adjusted accordingly when various components are made using materials. Also, the value is finally accounted as an average overall.
If the motorbike is aged 5 years and above or falls under the obsolete model, then the IDV is computed mutually with the consent of the insurance company and policyholder. There are insurance companies in India that may take the help of surveyors to obtain the suitable Insured Declared Value in insurance. This may result in additional costs which will be borne by the policyholder.
*Standard T&C apply
In case you are planning to sell your two-wheeler to anyone, then the insurance also gets transferred to that person. The Insured Declared value will continue like before only. But, the same insurance can never be transferred to a different two-wheeler. For a new bike, a fresh bike insurance policy is required.
Yes, increasing the bike’s value is possible. In case you add externally fitted accessories to the bike, the value will also go up.
Due to wear and tear, the IDV of the bike does get decrease.
Insured Declared value is a concept not about third-party liability policy. This is so as the bike insurance premium is defined by the insurance regulator that is IRDAI upon the cubic capacity of the bike’s engine.
In case of any incorrect information has been mentioned about the IDV and needs to be changed post the policy is bought, get in touch with the insurance company. The terms and conditions for the same will vary from insurer to insurer.
Settling a lower Insured Declared Value of the bike implies receiving a low claim amount in case of complete loss or theft. A total loss occurs when the bike gets damaged severely and the repair expense is more than the value of the bike.
Lowering the IDV is not a smart decision as you are taking a risk and in case of an unforeseen event, you will have to bear the loss of value. Insure the bike for the right Insured Declared Value to ensure obtain the suitable amount during a claim. Never reduce the IDV of the bike to reduce the premium as it has a higher risk.
*Standard T&C apply
The importance of IDV is during a claim. The claim process varies from insurer to insurer. Opting for the correct Insured Declared Value not only impacts the premium but also affects the insurance claim. In case you opted for a low IDV than the market value of the bike, you will end up having a low claim in case the vehicle gets stolen or is completely damaged.
The bike insurance claim is not going to be sufficient for the replacement and may lead to a financial strain. Hence, choose an IDV that is closest to the market value of the bike taking into account the aspect of depreciation as well. This doesn’t mean that you need to choose a high IDV. If you choose a higher IDV without any reason, you will end up paying a higher premium. Be mindful while selecting the IDV in bike insurance, it neither should be less nor more, it has to be ideal.
*Standard T&C apply
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