How is IDV Calculated for Bike Insurance?

Posted on: Nov 17, 2023 | | Written by:

How is IDV Calculated for Bike Insurance?

Published on November 17, 2023. EST READ TIME: 3 minutes

When it comes to bike insurance, understanding the Insured Declared Value (IDV) is crucial. IDV plays a significant role in determining your bike's insurance premium and the amount you'd receive in case of theft or total loss. Let's delve into how to check idv of bike and its implications for two-wheelers aged five years and above.

How is the IDV calculated for bike insurance?

IDV in bike insurance, represents the current market value of your bike. It is the maximum amount the insurance company will pay if your bike is stolen or declared a total loss. The idv in bike insurance is calculated based on the bike's manufacturer's listed selling price minus depreciation.

The formula used to calculate IDV for new bikes (less than 5 years old) is as follows:

IDV = (Ex-showroom price of the bike + Accessories) - Depreciation

Depreciation is a crucial factor in IDV calculation. In the first year, the depreciation is around 5%, and it increases with the bike's age. For new bikes, the IDV is typically higher, resulting in a higher insurance premium.

Now, for two-wheelers aged five years and above, the calculation differs slightly. Since older bikes have more depreciation, the IDV is calculated mutually by the insurer and the policyholder. You can negotiate the IDV with the insurer, taking into account factors like the bike's condition, mileage, and market demand for that particular model.

IDV for two-wheelers aged five years and above

To check the IDV of your bike, you can follow these steps:

1. Visit the insurer's website or contact their customer service.

2. Provide details such as your bike's make, model, year of manufacture, and any additional accessories.

3. The insurer will calculate the IDV based on their depreciation schedule and provide you with the value.

For bikes aged five years and above, it's essential to accurately represent the condition of your bike and any modifications or enhancements you've made to know how to check idv of bike. This can help in negotiating a fair IDV.

Conclusion

Understanding how IDV is calculated for bike insurance is vital for ensuring you get the right coverage. Properly calculated IDV ensures you are adequately covered and receive the appropriate compensation in case of loss or theft, making it a key element in your bike insurance policy.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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