Insured Declared Value(IDV) for Two Wheeler

• It is the maximum amount an insurer will pay in case of theft, total damage, or irreparable loss 

• Represents the current market value of your bike 

• Acts as the sum insured under a comprehensive bike insurance policy 

In simple terms, IDV defines how much your bike is covered for in case of complete loss.

IDV Calculator

The two-wheeler IDV is calculated based on the selling price of the manufacturer. The price considered during the calculation is the figure proposed at . It is then adjusted with the depreciation as per a specific schedule. However, insurance and registration charges of the two-wheeler are excluded from the IDV.

The IDV of the accessories that are not fitted by default from the factory of the vehicle, are calculated separately, at an extra cost to determine if an insurance is required for them.

How is IDV Calculated for Bikes?

IDV is not fixed; it is calculated based on multiple factors including depreciation, bike type, and usage. 

• Premium bikes (like Royal Enfield, KTM, Honda CB series) may retain higher value due to strong resale demand 

• Some insurers use smart algorithms considering real usage and mileage 

• You may request a revised IDV if the default value does not match your bike’s condition 

• Calculation considers depreciation and current market conditions 

Understanding the Manufacturer’s Selling Price

The base value for IDV calculation starts from the bike’s original ex-showroom price. 

• Based on Manufacturer’s Listed Selling Price (MLSP) at the time of policy purchase 

• Excludes registration charges and taxes 

• Serves as the starting point before depreciation is applied

Depreciation Rates Based on Bike Age

Depreciation reduces your bike’s value each year, directly impacting IDV. 

• Up to 6 months: 5% 

• 6 months to 1 year: 15% 

• 1 to 2 years: 20% 

• 2 to 3 years: 30% 

• 3 to 4 years: 40% 

• 4 to 5 years: 50% 

Note: Rates may vary by insurer. 

Adjustments for Accessories and Modifications

Added accessories can increase your bike’s insured value if properly declared. 

• Non-factory accessories like GPS, crash guards, or alloy wheels may increase IDV 

• Valid bills or proof of installation are required 

• Undisclosed accessories are not covered during claims 

• Proper declaration ensures full coverage for modifications

Effect of Registration and RTO Charges

Certain costs are excluded from IDV calculation. 

• RTO and registration fees are not included in IDV 

• Only bike value and depreciation are considered

Use of IDV Slabs by Insurance Companies

Insurers may standardize IDV using predefined ranges for consistency. 

• Based on bike brand, model, and market trends 

• Helps avoid disputes during claim settlement 

• IDV may be fixed or customizable depending on insurer

Example Calculation of IDV for a Bike

A simple example helps understand how IDV is derived. 

• Ex-showroom price: Rs.1 lakh 

• Age of bike: 2 years 

• Depreciation: 30% 

Calculation: 

• IDV = Rs.1 lakh − 30% 

• IDV = Rs.70,000 

This means the insurer will pay up to Rs.70,000 in case of total loss or theft. 

How IDV Affects Your Bike Insurance Premium?

IDV directly impacts both your premium amount and claim benefit. 

• Higher IDV = Higher premium + better coverage 

• Lower IDV = Lower premium + reduced claim payout 

• Very high IDV may not be approved by insurers 

• Balanced IDV is recommended based on real market value 

• IDV calculators help compare premium impact

Impact of IDV on Claim Settlement

Your claim amount depends entirely on the IDV chosen in your policy. 

• Claim payout is based on insured IDV value 

• Low IDV leads to lower compensation even if market value is higher 

• Important for theft or total loss claims 

• Correct IDV ensures fair financial recovery

Choosing the Right IDV for Your Bike

Selecting the right IDV requires balancing coverage, cost, and market value. 

• Compare IDV using online calculators and insurer quotes 

• Avoid blindly accepting default IDV values 

• Slightly higher IDV may be suitable for premium or rare bikes 

• Consider bike usage, location, and theft risk 

• Metro cities may require different IDV considerations due to higher risk

Key Tips: 

• Match IDV with current resale value 

• Balance premium cost and claim benefit 

• Avoid overinsurance and underinsurance 

• Adjust IDV based on bike condition and usage

Review and Adjust IDV During Policy Renewal

IDV should be reviewed annually to ensure accurate coverage. 

• Reassess bike condition and market value during renewal 

• Avoid underinsured or overpaid premiums 

• Increase IDV if accessories or improvements are added 

• Reduce IDV if usage or market value has declined 

• Use IDV calculators for accurate estimation every year

Importance of (IDV)Insured Declared Value

An IDV is basically a compensation amount that is paid to the insured, for the two-wheeler that has been stolen or damaged beyond repair. A rational value must be finalised on, which is close to the vehicle's market value so that the compensation matches the cost of damage incurred. Typically, insurers offer to decrease IDV in the range of 5% to 10%, as chosen by the customer. Lower IDV would mean a lower premium.

It is important to choose an insurer offering a lower IDV. Therefore, you can compare different insurers by keeping a constant IDV value in your mind. In case of an accident, the IDV decides whether or not the two-wheeler insurance policy is beneficial. At the time of the claim, the age of vehicle is the deciding factor for determining your IDV. 

Factors Affecting the Insured Declared Value of the Two-Wheeler

The below-listed are some of the factors affecting IDV of two-wheeler: 

• Age of the Vehicle: As your bike ages, its market value depreciates, leading to a lower IDV. New bikes typically have higher IDVs due to their higher market value. 

• Two-wheeler Model: Premium or high-end models generally have higher IDVs compared to standard models, reflecting their higher market prices.

• Depreciation: Standard depreciation rates are applied based on the vehicle's age to calculate its current market value, directly affecting the IDV.

• Registration Details: The registration date and location can influence the IDV, as market values may vary across different regions.

• Modifications and Accessories: Adding accessories or making modifications can increase your bike's value, potentially raising the IDV. However, these additions should be declared during insurance purchase for accurate assessment.