What is IDV in Two-Wheeler Insurance and Why It Matters for Your Policy?

How is IDV Calculated?

The IDV is calculated based on the manufacturer's listed selling price of the vehicle, adjusted for depreciation. Depreciation rates are applied as per the age of the vehicle:

• Up to 6 months: 5% depreciation
• 6 months to 1 year: 15% depreciation
• 1 to 2 years: 20% depreciation
• 2 to 3 years: 30% depreciation
• 3 to 4 years: 40% depreciation
• 4 to 5 years: 50% depreciation

For bikes older than 5 years or obsolete models, the IDV is determined through mutual agreement between the insurer and the insured.

Factors Influencing IDV:

1. Vehicle Age: Older bikes have a lower IDV due to depreciation.
2. Model and Make: Premium models may retain higher IDVs.
3. City of Registration: Market demand in different cities can affect the IDV.
4. Condition of the Bike: Well-maintained bikes may have a higher IDV.
5. Accessories and Modifications: Additional accessories can increase the IDV if declared during policy purchase.

Impact of IDV on Insurance Premium:

The IDV directly affects your two-wheeler insurance premium. A higher IDV leads to a higher premium since the insurer's potential liability increases. Conversely, opting for a lower IDV can reduce your premium but may result in inadequate compensation in case of a claim.

Choosing the Right IDV:

Selecting an appropriate IDV is essential. Understanding the IDV to lower premiums can lead to insufficient coverage, while overstating it results in unnecessarily high premiums. It's advisable to choose an IDV that accurately reflects your bike's market value to ensure adequate protection.

Buying Two-Wheeler Insurance Online:

Purchasing a two-wheeler insurance policy online offers convenience and the ability to compare different plans. Jio Insurance Broking provides user-friendly interfaces to help you select the right policy tailored to your needs.

In conclusion, understanding and accurately determining the IDV of your two-wheeler is vital for ensuring adequate coverage and a fair premium. Always assess your bike's current market value and choose an IDV that offers optimal protection.