What is the Insured Declared Value of a bike?

If you are buying a bike, the first thing to do is get your Insurance in order. And, because it is imperative, there are some things to be aware of. Several things get considered when picking proper Insurance coverage for your two-wheeler, be it when you buy or during subsequent renewals. In the case of Bike Insurance, one of these is Insured Declared Value.

Now, if you want to learn more about IDV in Two-Wheeler Insurance, how it gets calculated, the IDV calculator, and what factors to consider when calculating IDV in Bike Insurance, this guide will help you.

The IDV of your 2-wheeler is the Insurance value of the vehicle. IDV is the amount offered to you by your insurer in the event of theft or total damage. It gets decided using the procedures outlined in the India Motor Tariff. One of the elements that decide the premium amount you pay to insure your bike is the IDV.

What does IDV mean in Bike Insurance?

It stands for Insured Declared Value and refers to the value of your two-wheeler determined by the insurance company. The clauses for two-wheelers are the same as for any other vehicle. So, if seek to buy a bike or a scooter, remember these aspects.

What is an IDV calculator?

These calculators, available online, are a tool that assists in determining value quickly. It evaluates the bike’s market value and how much extra to pay by considering the two-wheeler’s age and depreciation value. It is one of the essential calculators used in the Automobile Insurance industry. It gets used to calculate the total amount to be paid in the event of real vehicle damage or theft.

So, while buying a new two-wheeler, the IDV equals 95% of the manufacturer’s quoted selling price. IDV decreases over time because of the vehicle’s age and other variables. As a result, a four-year-old two-wheeler has a lower IDV than a brand-new one. Using the IDV calculators, you can calculate the IDV in Two Wheeler Insurance Online.

Factors that decide IDV

There are a few elements to think of when choosing the appropriate IDV for your bike. The first aspect is how long the bike has been in use or its age. The lower the IDV, the longer it has been used. The model and make of your bike are the other facts to consider. This is because the vehicle’s make and model decides the cost of making.

The depreciation value is the third consideration. Any vehicle’s value depreciates with time, which directly impacts the IDV for the insurance policy in question.

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