IDV Calculator
Calculate the Insured Declared Value (IDV) of your car or bike based on its age and depreciation.
Vehicle Details
Depreciation rates are as per the Indian Motor Tariff schedule.
Insured Declared Value (IDV)
Maximum sum assured for your vehicle
Value Breakdown
Value Distribution
Understanding IDV in Motor Insurance
Insured Declared Value (IDV) is one of the most crucial components of your comprehensive car or bike insurance policy. It represents the maximum amount your insurer will pay you in case of total loss (beyond repair) or theft of your vehicle.
How is IDV Calculated?
The formula is straightforward:
The Depreciation Schedule
The Indian Motor Tariff defines a standard depreciation schedule based on the age of the vehicle:
| Age of Vehicle | % of Depreciation |
|---|---|
| Up to 6 Months | 5% |
| 6 Months to 1 Year | 15% |
| 1 Year to 2 Years | 20% |
| 2 Years to 3 Years | 30% |
| 3 Years to 4 Years | 40% |
| 4 Years to 5 Years | 50% |
* For vehicles older than 5 years, the IDV is mutually agreed upon between the insurer and the insured based on the vehicle's condition.
Important Tip
Never under-declare your IDV just to save a small amount on your premium. If your car is stolen or totaled, a lower IDV means you will receive significantly less compensation, leading to a huge financial loss.
Frequently Asked Questions
What is IDV in Motor Insurance?
IDV stands for Insured Declared Value. It is the maximum sum assured fixed by the insurer that will be provided on theft or total loss of the vehicle. Essentially, it is the current market value of your vehicle.
How is IDV calculated?
IDV is calculated as: (Manufacturer's selling price + Cost of accessories) - Depreciation. The depreciation is applied based on the age of the vehicle as per the standard schedule provided by the Indian Motor Tariff.
What happens to IDV after 5 years?
For vehicles older than 5 years, the IDV is mutually agreed upon between the insured and the insurer. It is usually determined by assessing the condition of the vehicle and its prevailing market value.
Should I declare a lower IDV to reduce premium?
No, it is not recommended. While a lower IDV reduces your premium, it also means you will receive a lower compensation in case of total loss or theft. Always declare the correct IDV to ensure adequate coverage.
Does IDV include registration and insurance costs?
No, IDV is calculated solely on the ex-showroom price of the vehicle and any additional accessories. It does not include registration charges, road tax, or insurance premiums.