While purchasing insurance for your bike or while renewing your bike insurance, you must have heard the term IDV.
What is IDV in Bike Insurance?
The full form of idv is "Insured Declared Value". It is the value of the vehicle, that is recorded while purchasing an insurance policy for a motor vehicle. This is not the market price. But the price of the vehicle calculated based upon few factors. This information is very important because it is going to be the deciding factor for the amount you may receive in case of bike theft or damage.
In simple words Insured declared value is the maximum sum irrespective of the case, insurance company is going to pay to the policy holder.
Insured Declared Value
Insured Declared value is very important in the case of bike theft, or damage or repair or any such criteria because of which the vehicle owner had purchased the insurance. If the IDV value of a vehicle is INR 90000 rupees then the maximum reimbursement would be INR 90000 Rupees.
The IDV of any vehicle is dependent upon the age of the motor bike. Following table is going to help you understand the rate.
Age of the Car
|
Depreciation %
|
6 months and below
|
5%
|
6 months to 1 year
|
15%
|
1 year to 2 years
|
20%
|
2 years to 3 years
|
30%
|
3 years to 4 years
|
40%
|
4 years to 5 years
|
50%
|
Source: IDV Calculator
It is also dependent upon-
- Age of the vehicle
- First date of registration
- City where the bike is located
- Current Registration
- Kilometers it had run so far
- Petrol vehicle or Diesel vehicle or Gas vehicle
- Condition of the vehicle
Also Read: Google Pay Banned in India
Conclusion
IDV stands for Insured Declared Value and it is the maximum price that an insurance company is going to pay the insurance holder under the case of damage or repair.
