How IDV Affects Your Bike Insurance Renewal Process

What is IDV in Bike Insurance?

IDV (Insured Declared Value) is the current market value of your bike — not the amount you paid when you bought it, but its depreciated value at the time of insurance or renewal. In simpler terms, it's the maximum amount your insurer will pay you in case your vehicle is stolen or declared a total loss.

The IDV is calculated based on the manufacturer’s listed selling price, minus depreciation based on the age of the bike. Add-ons and accessories not fitted by the manufacturer are also considered separately.

Here’s a quick breakdown of standard depreciation rates used to calculate IDV:

The depreciation for the Insured Declared Value (IDV) of a two-wheeler depends on its age:

• For vehicles up to 6 months old, the depreciation is 5%.
• From 6 months to 1 year, the depreciation increases to 15%.
• For those between 1 to 2 years, it is 20%.
• Between 2 to 3 years, the depreciation becomes 30%.
• For 3 to 4 years old vehicles, it is 40%.
• And for 4 to 5 years, the depreciation rate is 50%.

After five years, the IDV is mutually agreed upon between the insurer and the policyholder.

Why IDV Matters at the Time of Bike Insurance Renewal

Most people focus solely on the premium when they renew bike insurance, but overlooking IDV can cost you more in the long run.

Affects Claim Settlement

The IDV directly influences the amount you'll receive if your bike is stolen or completely damaged. A lower IDV may reduce your premium, but it also reduces your claim payout.

Influences Premium

Insurers base your premium calculation on the IDV. A higher IDV means higher premium, and vice versa. However, cutting corners on IDV for a cheaper premium is a risky trade-off.

Reflects True Market Value

Keeping IDV aligned with your bike’s current market value ensures you're neither over-insured nor under-insured. Both situations can create issues at the time of claims.

Common Mistake: Lowering IDV to Reduce Premium

Some policyholders intentionally opt for a lower IDV to bring down the renewal premium. While it seems like a quick saving tactic, it can severely hurt you during claims. Imagine your bike gets stolen, and the payout is 30% less than the actual worth — all for saving a few hundred rupees on premium.

Instead, platforms like Jio Insurance Broking recommend maintaining an accurate IDV that matches the bike’s market value. This ensures optimal protection and value-for-money coverage.

How to Choose the Right IDV When Renewing Bike Insurance

When it’s time to renew bike insurance, follow these steps to get the IDV right:

1. Check the current market value of your bike using online resale tools or dealer inputs.
2. Don’t blindly accept the default IDV shown by your insurer. You usually have a small range within which you can adjust it.
3. Use tools like Jio Insurance Broking’s online comparison platform to view how different IDV values impact premiums across insurers.
4. If your bike is older than 5 years, discuss the agreed value with the insurer based on condition and usage.

Renewing Bike Insurance with Jio Insurance Broking – A Smarter Choice

Renewing your bike insurance can be simple, quick, and transparent when done via a tech-enabled platform like Jio Insurance Broking.

Here’s how Jio Insurance Broking helps:

• Instant Comparisons: See multiple insurers' quotes with varying IDV options, premiums, and add-ons.
• Expert Assistance: Get help in selecting the right IDV based on your bike’s age and condition.
• Renewal Reminders: Never miss your renewal date with timely alerts.
• Paperless Process: Renew your policy within minutes, from anywhere, anytime.
• Claim Support: If things go wrong, their support team assists you through the entire claim journey.

With Jio Insurance Broking, you're not just renewing a policy; you're making an informed financial decision that balances protection with cost.

Your bike is more than a vehicle — it’s freedom, convenience, and sometimes even an emotional attachment. That’s why when you renew bike insurance, you must understand every aspect that influences your coverage, especially IDV.

Choosing the right IDV is a balancing act between premium and protection. Don’t fall for the trap of lowering IDV for cheaper premiums. Instead, use Jio Insurance Broking’s expert guidance and tools to ensure your bike gets the coverage it truly deserves — at a fair price.

Renew smart. Ride safe. Always insured.