The IDV (Insured declared Value) refers to the amount that you receive from the insurer in case of the total loss of your bike. By total loss, the insurer means that the bike is now in a state that is irreparable or stolen from the owner. The IDV in some cases also means the bike's current market cost. The current market cost of the bike is the approximate value of the bike. It does not mean the resale value of the bike and totally depends upon the party that is calculating the value.

## What does IDV mean?

In simplified terms, IDV can be stated as the market value of your bike after deducting depreciation. Let us take an example to understand this concept better. If you buy a bike for Rs. one lakh and this price is excluding any road taxes, insurance and accessories etc. Then, at that time the IDV of your bike is Rs. one lakh as your bike is brand new and no depreciation has been charged on it. Once you start using your bike, from the second day, the IDV will change and the value of the bike will start to depreciate. If the above example is taken, the value of your bike after two years is Rs. 65,000, then your IDV will also be Rs. 65,000.

## How Can I Increase my IDV?

Usually, the IDV is calculated depending upon the condition of the bike, the age of the vehicle and the depreciation that is charged.

### However, any individual may increase/decrease the IDV as per their requirements.

• You can depreciate the vehicle according to your schedule and thus have a greater IDV of the vehicle
• You can maintain your vehicle in an excellent manner so that the IDV is increased
• When the age of the bike will be lower, the IDV will be higher.

## How to Calculate the IDV of your Bike?

It is expected that you should know the IDV of your bike so that you will know the amount that will be paid by the insurer in case of loss. A premium is charged depending upon the insured declared value of your bike. In this case, the higher the IDV of the bike, the higher the premium. The calculation of IDV is not rocket science. The IDV calculators that are available online will generally help you to calculate and give the IDV of your bike immediately.

## What are the factors considered while calculating IDV?

Since IDV is the market value of your vehicle, there are certain factors that are considered while calculating the IDV of the bike. They are

• The model of your bike and also the make of your bike
• The date when the bike was registered
• The city in which registration has been done
• The type of fuel your bike needs
• The number of years from the purchase date
• The type of policy of your bike
• The period of bike policy

## Importance of IDV in Bike Insurance

Since IDV decides the amount that will be paid as a premium, therefore it is a critical part of your bike insurance

• The correct value of your bike is signified by the IDV as it shows the model, the make of the bike and also other details that are shown in the invoice of the bike. The capacity of the bike and the city where it is being used are also shown and reflected by the IDV.
• The premium of your bike depends upon various factors such as the city in which it is used, the premium of the bike and the capacity of the bike. All this apart, the premium is also decided upon depending upon the IDV thus this makes it all the more important.
• In some cases, people may sometimes depict a lower IDV so that they have to pay lower premiums. This way, the loss is yours because if at any time, the bike gets stolen or has a complete breakdown or cannot be repaired, then the claim that you will receive will be lesser because the premium paid and the IDV was reduced.

## What are the Depreciation Rates?

 Age of the Bike Depreciation % 6 months and below 5% 6 months to 1 year 15% 1-2 years 20% 2-3 years 30% 3-4 years 40% 4-5 years 50% 5+ years IDV mutually decided

## Benefits of an Increased IDV

There are some advantages that an increased IDV has. Below we have listed some

• In case of theft of the vehicle, buying a new vehicle using expenses that are out of your pocket is a tedious job. Hence, in case of an increased IDV, the insurer pays the IDV amount to the insured individual.
• In case of a constructive loss, wherein the loss has to be paid out of pocket, it might be difficult for the individual to pay the whole amount and incur the expenses on their own. In this case, a higher IDV gives a higher payout so the expenses can be covered easily.

## Conclusion

You can increase the IDV of your bike and claim benefits in case of any losses that might occur. The whole idea of insurance is to safeguard you from any uncertainties and thus a higher IDV solves the given purpose.

## FAQSHow can I increase my IDV of a bike in Insurance?

1:How can I calculate the IDV of my bike?

You can calculate the IDV of your bike by entering details in the IDV calculator available online.

2:How are biked depreciated?

 Age of the Bike Depreciation % 6 months and below 5% 6 months to 1 year 15% 1-2 years 20% 2-3 years 30% 3-4 years 40% 4-5 years 50% 5+ years IDV mutually decided