Why It Is Important To Set Your IDV Value Correctly While Renewing Two Wheeler Insurance


Owning a bike is the childhood dream of many people. However, it comes with loads of responsibility and risks as well. Bikes are exposed to the risk of a road accident, which can cause severe damage to your beloved bike and to you too. That’s why it is compulsory to insure your bike with under Motor Vehicle (Amendment) Act, 2019.

Two wheeler insurance will provide your coverage against damage caused to you or your bike due to accident, theft, fire, natural calamities, vandalism, and much more. However, owning insurance is not everything. You need to renew it when your policy tenure ends, and for that, you need to know the IDV value of your bike. Let’s discuss in brief:

What is Insured Declared Value?

IDV or Insurance Declared Value plays an important role in calculating the maximum sum assured in case of damage or theft of your two wheeler. In layman’s term, it is the maximum amount of money you are entitled to get if your vehicle is broken down, lost, or is damaged beyond repair, within the policy cover tenure. IDV also decides the amount of premium you will pay for your bike insurance.

How Do We Calculate It?

You should remember that IDV is not calculated on the price that you have paid to buy the vehicle. Instead, it is calculated considering the market value of your bike during the commencement of the policy. This value varies largely with time, that’s why it is advisable to buy two wheeler insurance, within 6 months of buying your bike to get the maximum IDV.

What Are The Factors That Affects The IDV Of Your Bike During Policy Renewal?

IDV of a two wheeler is affected by several factors. The IDV of a bike is inversely proportional to its age. It means as your vehicle ages, your IDV will be lesser and vice versa. Apart from the age, your bike’s make, and model also majorly impact its IDV.

The Insured Declared Value increases over time due to the depreciation factor. We have made the table to help you understand the dynamics between the age of a vehicle and its IDV:

Age Of Your Bike Depreciation

(In Percentage)

Less Than 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

In a Nutshell!

Now you know that the IDV of your beloved bike plays a very important role. Either you are claiming or during the bike insurance renewal, always calculate the correct value of your vehicle, otherwise, you may end up paying more. Many reputable insurers provide great deals and would give you the best advice, which will help you choose what’s best for you. It is advisable that you weigh all the options and make an informed decision. Doing this will help you save the money and get the best value for your vehicle.