Two Wheeler Bike Insurance 349 views August 29, 2019

Everything About Your Two Wheeler IDV

How to Know Your Two Wheeler’s IDV?

There are some very crucial elements in motor insurance. Among them, is the vehicle’s IDV or the insured declared value. The IDV is very crucial as it determines the important factors of the bike insurance coverage such as the insurance premium and the insurance claim amounts. Take a look at this article to know more about your two-wheeler insurance plan’s IDV calculations.

What is the IDV in two-wheeler insurance?

Let us begin by understanding what exactly a vehicle’s IDV is and how it impacts the motor insurance cover.

Concept of IDV

The motor insurance companies in India understand that all vehicles suffer wear and wear as they age. A bike that is 2 months old is therefore deemed more valuable than a bike that is 2 years old. As the name suggests, the insured declared value is a value determined and declared by the insurance provider. It is a rate of the depreciation associated with each and every vehicle, depending on how old it is. 

Impact on insurance

When you buy or renew a bike insurance policy, the IDV plays a very deciding role. The IRDAI has set a guideline for the motor insurance providers. They have to adhere to it. There is a slab of the IDV rates. So if your bike is about 6 months old, an IDV of 5% is applicable. This will be deducted from the original value of the bike. Since that becomes the current value of the vehicle, your bike insurance cover will also be calculated accordingly. The premium you pay for the insurance cover will be directly proportional to the IDV as well. Similarly, when a vehicle insurance claim is paid out, the IDV will be kept in mind.

These are the two significant points to note about the insured declared value in relation to motor vehicle insurance.

Exact IDV calculations

As stated, the exact IDV calculations are fixed by your insurance company. They, in turn, follow the rules set up by the IRDAI, which is the insurance governing body in India. here is a slab for you to see what the exact IDV settings are:-

Age of vehicle IDV percentage
Under 6 months 5%
Between 6 months and 1 year 15%
Between 1 and 2 years 20%
Between 2 and 3 years 30%
Between 3 and 4 years 40%
Between 4 and 5 years 50%

When the IDV is being calculated, make sure you are placed under the correct bracket. This is because the insurance premium of your vehicle insurance coverage will greatly depend on this. Do not blindly trust your insurance company or your insurance agent. Verify the calculations yourself to determine you are charged fairly.

Protection against IDV

If you feel the IDV is unfair and you should get the full compensation each time you make an insurance claim, you should look towards a few add-on bike insurance covers. Among them, is the zero depreciation rider. This is a very useful rider that you can use here is the zero depreciation rider.

Benefits of Two Wheeler Zero Depreciation Riders

The zero depreciation rider offers the following benefits:-

Protects the value of the bike

If you have a new or an expensive motorcycle, you will surely need a zero depreciation vehicle insurance add-on cover. This is because a new or an expensive sports bike has a very high value. If it gets damaged, you need to get the maximum compensation through a bike insurance claim. You cannot afford to get a percentage of your insurance claim deducted due to the IDV clause. Get the rider and stay assured of getting the highest possible bike insurance claim amount. 

Protects the value of the spare parts

The same holds true for the spare parts of a bike. The IDV impacts the spare parts too, and if you need to repair or replace them, you will get a claim amount after the IDV is deducted. So get the zero depreciation bike insurance rider and get to secure the expensive spare parts of the bike as well.

Makes bike replacement simple

If your bike gets damaged or robbed, you can get a full compensation via the bike insurance claim. This will help you to replace the vehicle and get the same or similar model. This is another very big advantage you get when you buy a zero depreciation motorcycle insurance rider to stay covered against the IDV.

These are some ways in which the zero depreciation rider can help you against the IDV clause in bike insurance.

Final Word About What is 2 Wheeler IDV and How to Find IDV?

IDV is pretty easy to understand the concept of motor insurance. It is a very important concept, nonetheless. To grasp the clauses well before you buy or renew your vehicle insurance plan. Agree to the IDV your insurer tells you or get a zero depreciation rider and get added protection.