Two wheeler IDV

Two wheeler IDV

Insured Declared Value, in simple terms, is the amount that you get in case vehicle is stolen or completely damaged. It is highly recommended to get an IDV , which is equal to the market value of the 2 wheeler.

Two Wheeler IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The depreciation schedule is as follows:

Age of Vehicle % Depreciation for adjusting IDV
Not exceeding 6 months 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%

Beyond 5 years, the IDV is calculated by mutual agreement (between you and insurer) or based upon last IDV (minus depreciation)

Insurance agents typically reduce IDV to lower your premium, but this is not advisable. Since it increases your loss risk, if the vehicle is stolen or badly damaged. Not only in that year, but in subsequent years as well, since the new policies might be based on the IDV that you decide now.

Any special clauses that will reduce my insurance premium amount further?

There are multiple clauses, centered around the safety of your vehicle, like

  • Installation of approved Anti-theft devices,
  • membership of selected 2 wheeler clubs,
  • Separate personal accident insurance cover taken for the driver, owner, paid driver that gives comfort to your insurer, and reduces the premium.

If you need any assistance in selecting the best insurance for your two wheeler, please fill in the form above and get the best insurance quote.