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  • Insured Declared Value (IDV) for Two Wheelers

    Two Wheeler Insurance
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    The Insured Declared Value or IDV of a vehicle is a key factor in determining the premium amount that one will have to pay at the time of purchasing or renewing a two wheeler insurance policy. The Insured Declared Value of a particular vehicle is indicative of the current market value of the vehicle. Thus, it is the maximum sum of money that will be paid by the insurer to the policyholder in the event of a vehicular theft or constructive total loss. Read on to know more about why the Insured Declared Value is important.

    How is the Insured Declared Value Calculated?

    The IDV is calculated by taking the selling price of the two-wheeler into account and adjusting this sum for depreciation. Thus, as time progresses, the IDV of your two-wheeler will keep reducing. The formula to calculate the IDV of a two-wheeler is as follows:

    IDV = (Manufacturer’s listing price – Depreciation) + (Accessories and extra fittings that are not included in the listed selling price – Depreciation)

    The depreciation schedule and Insured Declared Value based on the age of the bike are as follows:

    Age of the Two-Wheeler Depreciation Rate Insured Declared Value
    Up to 6 months 5% 95% of the ex-showroom value of the vehicle
    Between 6 months and 1 year 15% 85% of the ex-showroom value of the vehicle
    Between 1 year and 2 years 20% 80% of the ex-showroom value of the vehicle
    Between 2 years and 3 years 30% 70% of the ex-showroom value of the vehicle
    Between 3 years and 4 years 40% 60% of the ex-showroom value of the vehicle
    Between 4 years and 5 years 50% 50% of the ex-showroom value of the vehicle

    Keep in mind that for vehicles that are older than 5 years, the Insured Declared Value will be mutually agreed upon by the insurance provider and the policy buyer.

    Apart from the depreciation rate and the ex-showroom price of the vehicle, the insurance provider may also take into account factors such as the make of the two-wheeler, model of the vehicle, manufacturer details, registration details, etc., to calculate the IDV.

    Insured Declared Value and two wheeler insurance Premium Calculation

    If you purchase a comprehensive/bundled/package two wheeler insurance policy, the Insured Declared Value of the vehicle is one of the key factors that is taken into account to decide the premium rate of the policy. Thus, the more a vehicle ages, the lesser will be the IDV, which, in turn, will result in a lower payable premium. A few other factors that are taken into account to calculate the premium quote for a comprehensive/bundled/package two wheeler insurance policy include the manufacturing year of the vehicle, No Claim Bonus (if applicable), add-ons opted for, geographical location of the policy buyer, etc.

    The two wheeler insurance premium calculator, which is available on the official websites of most motor insurance providers and on third-party insurance comparison websites, is an online tool that helps you calculate the premium payable for a policy. Customers and prospective policy buyers can use this tool free of cost. To use the premium calculator tool, you will simply have to navigate to the official website of the insurance provider and input the required details, after which the premium quote will be displayed to you.

    Importance of Declaring the Correct IDV

    Individuals who wish to purchase or renew a two wheeler insurance policy are required to declare the IDV of their two-wheeler. It is necessary to declare the correct IDV, given that it can directly impact the premium payable and the settlement that you will receive in the event of a constructive total loss or vehicular damage.

    If you declare an IDV that is lower than the current market value of your two-wheeler, the insurer will offer you a lower premium quote. However, if you happen to raise a claim for vehicular theft or constructive total loss, the settlement you receive will also be less, which will result in you having to incur significant losses. On the other hand, if you declare an IDV that is much higher than the current market value of the vehicle, you will be required to pay a higher premium for the policy. Thus, make sure to correctly assess and declare the IDV of your two-wheeler.

    *The customer reviews/feedback/opinions expressed on this website are solely of their authors and do not reflect, in any way, the view of BankBazaar Insurance.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Insured Declared Value (IDV) for Two Wheelers Reviews

    • review Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have used the two wheeler insurance policy with the UNITED INDIA INSURANCE where i have used it for one year but i have not experienced with no claim with this policy. Premium and the IDV value is satisfactory with this policy. The policy coverage is for 1st party with this insurance.
      Was this review helpful? 4
      , kanchipuram
      Reviewed on Jan 30, 2019
    • review Two Wheeler Insurance
      "BETTER"
      0.5 4.5/5 "Excellent!"
      I have used the two wheeler insurance policy with the TATA AIG GENERAL INSURANCE where i have used it for one year but the premium is nominal along with that the IDV value is satisfactory with this policy. The policy coverage is for 1st party insurance with this policy.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 30, 2019
    • Bajaj Allianz Two Wheeler Insurance
      "BETTER"
      0.5 4.5/5 "Excellent!"
      The reason for taking the two wheeler insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE because it is the trusted company also the benefits are good. I had no claim experience but the premium and the IDV value is satisfactory added on that the coverage is for 1st party.
      Was this review helpful? 2
      , new delhi
      Reviewed on Jan 30, 2019
    • review Two Wheeler Insurance
      "AVERAGE"
      0.5 2.0/5 "Expected more"
      I am not satisfied with the services of the ICICI LOMBARD GENERAL INSURANCE where i have used it for one years as a two wheeler insurance policy. The premium is nominal when compared to the other policies added on that the IDV value is satisfactory with this policy.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 30, 2019
    • HDFC Ergo Two Wheeler Insurance
      "BETTER"
      0.5 4.0/5 "Great!"
      There is no particular reason for taking the two wheeler insurance policy with the HDFC ERGO GENERAL INSURANCE. The premium and the IDV value is satisfactory with this policy added on that the policy coverage is comprehensive but i have not experienced with claim.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jan 30, 2019
    • Liberty Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have used the two wheeler insurance policy with the LIBERTY VIDEOCON GENERAL INSURANCE for one year but i have no claim experience with this policy. The premium and the IDV value is satisfactory added on that the coverage is for 1st party with this policy.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 30, 2019
    • Bajaj Allianz Two Wheeler Insurance
      "AVERAGE"
      0.5 3.5/5 "Pretty good"
      There is no particular reason for taking the two wheeler insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE but i have faced the payment issues with this policy at the beginning. I had no claim, premium also the IDV value is satisfactory along with that coverage is for 1st party.
      Was this review helpful? 1
      , bangalore
      Reviewed on Jan 30, 2019
    • review Two Wheeler Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I have previously used the two wheeler insurance policy with the NEW INDIA ASSURANCE where i have used it for one year but i have not experienced with claim with this policy. The premium and the IDV value is satisfactory with this insurance policy.
      Was this review helpful? 0
      , yamuna nagar
      Reviewed on Jan 30, 2019
    • HDFC Ergo Two Wheeler Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      I am an existing customer customer of the HDFC so i have taken the two wheeler insurance policy with the HDFC ERGO GENERAL INSURANCE. The premium and the IDV value is satisfactory with this policy also the policy coverage is for 1st party. I had no claim experience with this policy.
      Was this review helpful? 0
      , yamuna nagar
      Reviewed on Jan 30, 2019
    • HDFC Ergo Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      The reason for taking the two wheeler insurance policy is because it is with best also it is good insurance to use when compared to the other insurance policy. The premium and the IDV value is satisfactory with this policy but i am not aware of the policy coverage.
      Was this review helpful? 1
      , sonipat
      Reviewed on Jan 30, 2019
    • HDFC Ergo Two Wheeler Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      There is no particular reason for taking the two wheeler insurance policy with the HDFC ERGO GENERAL INSURANCE where i have no claim experience with this insurance policy. The premium and the IDV value is satisfactory with this policy also the policy coverage is comprehensive.
      Was this review helpful? 0
      , pune
      Reviewed on Jan 30, 2019
    • Bajaj Allianz Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have used the two wheeler insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE for past one year, i have not received any notification regarding the renewal so i have changed this policy. I have no claim experience but the premium and the IDV value is very good.
      Was this review helpful? 1
      , udumalaipettai
      Reviewed on Jan 30, 2019
    • Liberty Two Wheeler Insurance
      "BETTER"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the two wheeler insurance policy with the LIBERTY GENERAL INSURANCE is because when compared to the other policies it is good. I had no claim experience but the policy coverage is for 80% with this policy. The premium and the IDV value is very good.
      Was this review helpful? 0
      , udumalaipettai
      Reviewed on Jan 30, 2019
    • review Two Wheeler Insurance
      "GOOD POLICY"
      0.5 3.0/5 "Satisfactory"
      I have been using the two wheeler insurance policy with the TATA AIG GENERAL INSURANCE since from last one year. The premium and the IDV value is satisfactory with this policy. The documentation process is simple and easy. They have provided the road side assistance with this policy.
      Was this review helpful? 0
      , nagpur
      Reviewed on Jan 30, 2019
    • Reliance General Two Wheeler Insurance
      "BETTER"
      0.5 3.0/5 "Satisfactory"
      I have used the two wheeler insurance policy with the RELIANCE GENERAL INSURANCE and i have used it for one year but i have not experienced with any claim with this policy. The policy coverage is 1st party added on that the premium and the IDV value is good.
      Was this review helpful? 0
      , nagpur
      Reviewed on Jan 30, 2019
    • Bajaj Allianz Two Wheeler Insurance
      "BETTER"
      0.5 4.0/5 "Great!"
      The reason for taking the two wheeler insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE is because they are offering the lower premium when compared to the others also the IDV value is good. I had no claim but the policy coverage is for 1st party.
      Was this review helpful? 0
      , nagpur
      Reviewed on Jan 30, 2019
    • Bajaj Allianz Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have used the two wheeler insurance policy with the BAJAJ ALLIANZ GENERAL INSURANCE for one year but i have not experienced with any claim with this policy also the premium and the IDV value is satisfactory with this policy. Policy coverage is also satisfactory.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 30, 2019
    • HDFC Ergo Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      The reason for taking the two wheeler insurance policy with the HDFC ERGO GENERAL INSURANCE is because they are offering the higher IDV value when compared to the other insurance policies. The premium is nominal. Policy coverage is 1st party.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 30, 2019
    • review Two Wheeler Insurance
      "GOOD POLICY"
      0.5 4.0/5 "Great!"
      I have been using the two wheeler insurance policy with the UNITED INDIA INSURANCE since from last four years where i had a claim with this policy and the settlement is cashless with no issues. The premium and the IDV value is satisfactory also the coverage is also good.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Jan 29, 2019
    • Bharti Axa Two Wheeler Insurance
      "GOOD POLICY"
      0.5 5.0/5 "Blown Away!"
      The reason for taking the two wheeler insurance policy with the BHARTI AXA GENERAL INSURANCE is because they are offering with the lowest premium when compared to the others also the IDV value is good. I had no claim but the policy coverage is comprehensive.
      Was this review helpful? 1
      , bhubaneshwar
      Reviewed on Jan 29, 2019
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