What is IDV in Two Wheeler Insurance? This Article Explains It All!

It can be quite confusing to understand the various terminologies that you come across when buying bike insurance online. One such term that you might not understand is IDV. However, knowledge is power and to acquire the power of being completely financially stress-free in the event of an accident, getting to know your IDV is very important.

So, what exactly is IDV? 

An Insured Declared Value, or IDV, is essentially the market value for your bike in the eyes of the insurer. This is the maximum amount of money you can receive from the insurance company if your bike gets completely damaged in an accident or gets stolen. It is important to keep in mind that your IDV is directly related to the age of your vehicle and the older your bike is, the lesser insured declared value an insurer provides. 

But why is IDV important? 

Understanding the IDV is very important as it is directly proportional to the premium you pay for your two wheeler insurance policy. It is recommended to choose an insured declared value that is not too far away from the current market price of your vehicle as you would not want to bear any additional financial burden of getting your bike repaired even after getting your bike insured. Getting an IDV that is more than the actual value of your bike, is a bad idea as the insurance company surveys your bike and would reject an insurance claim if the IDV is found to be inappropriate. 

Now that you know why the insured declared value is important when you are buying or renewing bike insurance coverage, the next most important thing is to understand what factors influence the right IDV for your two-wheeler.

So, what factors influence the calculation of the IDV?

IDV is based primarily on the age of your vehicle and the price depreciation it has accumulated over the years. However, there are other factors that influence the IDV as well, such as – 

1. Bike’s details – To calculate an apt IDV, you would need to provide the insurer with some basic information about your bike. Details like the engine capacity of your bike, the manufacturing year, the number of kilometres driven, the modifications, etc, are a few examples of the parameters that taken into account when determining your IDV.
2. Bike registration information – The area in which you have registered your bike, the date and the details of the bike’s registration also play an important role in determining the insured declared value of your bike. 
3. The services offered – Your IDV would increase if you include various add-ons that are provided by the insurance company like the bike consumables add-on or the zero-depreciation add-on. It is recommended to avail of these additional services because even though they would increase your premium by a bit, the benefits offered in return prove very helpful in saving a significant amount of money in the long run.

We hope this article has cleared all your doubts regarding the IDV of an insurance policy and as a result helps you in getting the right bike insurance policy. Remember that you can easily do bike insurance online renewal to save yourself time and effort when getting coverage.