What Is IDV In Insurance?

IDV, or Insured Declared Value, most individuals are familiar with this particular motor insurance jargon. In essence, the IDV is the highest value, the sum assured supplied by an insurer to a policyholder, or the highest sum that a policyholder may be entitled to as compensation in the event that the insured bike is totally lost or damaged.

IDV is also taken into account to represent the insured vehicle's current market value. In other words, the entire amount you will be entitled to recover as compensation or reimbursement for the irreparable harm done to your insured two-wheeler is the vehicle's insured declared value.






Therefore, while choosing a comprehensive two-wheeler insurance policy, you must choose an adequate IDV to guarantee that you receive the highest possible compensation pay-out in the event of an accident in the future. The IDV you select will now directly affect the premium that must be paid. Therefore, the higher the selected IDV, the higher your premium will be. The premium is typically charged between two and three percent of the insured vehicle's total IDV.

How Do I Determine My Bike's IDV?

As previously indicated, the IDV calculator for bikes will assist you in understanding the entire premium due for the insurance policy you have selected. But how can you figure out a bike's IDV?

The IDV value of a bike will be determined by factoring in the two-current wheeler's market selling price. The depreciation of the bike's parts is also subtracted from the market price of the bike to determine theIDV. The following formula can be used to determine a bike's IDV:

(Vehicle's quoted market price - depreciation cost) + IDV (Insured Declared Value) (cost of the bike accessories – depreciation value of the parts)

Here, even a bike's additional equipment will be taken into account when determining the IDV. For instance, the cost of any extras you install, such as body covers, tyre inflators, gears, etc., would be reflected in the IDV calculator for bike.

However, if your two-wheeler is devoid of any additional equipment, you can determine the IDV of your bike on your own with the aid of an online IDV calculator. The formula is as follows:

Manufacturer's registered cost of the bike minus depreciation value is the IDV (Insured Declared Value).

How will this operate now? Therefore, if you get a bike insurance policy and the market value of your bike is 5 lakh, your insurer will pay out up to the maximum value you choose as an IDV in the event that your bike sustains total damage or is lost irreparably. It is imperative to be aware that if your bike is stolen or severely damaged during the term of the insurance, you can only make a claim for the IDV.

Importance of IDV For Bike Insurance Plans-

  • The benefits of selecting the appropriate IDV for your bike are as follows:
  • The market value of your bike is its IDV, as was previously mentioned. As a result, it will directly influence the premium due. Additionally, receiving your IDV back in the event that your bike is completely damaged can be a blessing!
  • The level of risk will also depend on your bike's IDV. Therefore, the likelihood of a bike being stolen will increase as the IDV increases. This would ultimately result in a higher premium pricing.

The Value Of IDV In Bike Insurance Plans

The following are some advantages of choosing the right IDV for your bike:

  • Your bike's IDV, as stated previously, is its market value. It will consequently have a direct impact on the premium due. Furthermore, getting your IDV back if your bike sustains severe damage can be a godsend!
  • The IDV of your bike will also influence the risk level. Therefore, when the IDV rises, the chance of a bike being stolen also rises. In the end, this would mean higher premium prices.
  • Reimbursements for insurance claims are given based on how much your bike is worth. The cost of repairs will also be determined by the same factors. As a result, it becomes one of the crucial components in your bike insurance, ensuring that you will be compensated fairly for the loss of your bike and any claims you may make in these trying circumstances.
  • If your bike is ever stolen or suffers irreparable damage, the insurance will pay you an amount equivalent to your selected IDV as compensation. Therefore, while choosing the IDV for your bike, be careful to do it in accordance with the bike's value.


Q1. Why is declaring the right IDV crucial?

Ans: Declaring the correct IDV is crucial since it will also decide the highest compensation you can expect in the event that your two-wheeler is damaged or destroyed.

Q2. What will happen if I declare my IDV incorrectly?

Ans: If you declare your IDV wrong, you are essentially stating a lesser or higher value for your motorcycle. Therefore, if you mentioned the incorrect, lower IDV that is insufficient for your bike, you will receive a smaller amount in the event of claims. If you indicated the correct, higher IDV, you will receive a larger amount in the event of claims.

Q3. How is IDV determined for two-wheelers?

Ans: By comparing the bike's market worth to the same and deducting its depreciation, you may roughly calculate your IDV (based on how old it is). You can also use an online IDV calculator for two wheelers like this one if you're unsure how to proceed.

Q4. Can I raise my two-IDV wheeler's value?

Ans: At Digit, we provide you the option to alter your IDV. However, we always advise providing the correct amount because doing so will provide you the correct premium amount and the exact amount you need for claims. Your premium and maximum claim amount will increase in direct proportion to your IDV, and vice versa.

Q5. Is it a good idea to lower my two-IDV wheeler's in order to get a lower premium?

Ans: No, doing this isn't a good idea since if there are claims, you'll only get a smaller payout that might not be enough to cover your particular two-wheeler. Keep in mind that your IDV also represents the maximum amount your insurer will pay out in the event of losses and damages. Therefore, the smaller your premium and IDV, the lower your maximum claim amount will be.

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