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What is Insured Declared Value (IDV)?

  • The Insured Declared Value (IDV) is an essential aspect of Car Insurance policies in India. It refers to the maximum amount that the insurance company will pay in case of a total loss or theft of the insured car
  • The IDV is determined based on the car's market value, taking into account factors like the car's age, make, model and depreciation
  • It is essential to set the IDV of your car correctly because it determines the maximum amount that you will receive from the insurance company in case of total loss or theft
  • The IDV plays a vital role in determining the premium amount for Car Insurance policies . The higher the IDV, the higher the premium amount and vice versa
  • In case of a total loss or theft of the insured car, the insurance company will pay the IDV as the maximum claim amount
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How to Calculate IDV?

  • The IDV of a vehicle is calculated based on the manufacturer's listed selling price of the vehicle, minus depreciation
  • The depreciation rate for IDV calculation is fixed by the Insurance Regulatory and Development Authority of India (IRDAI) and is based on the age of the vehicle
  • The IDV of a vehicle can be calculated using the formula: IDV = Manufacturer's listed selling price - (Depreciation + Optional accessories, if any)
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Frequently Asked Questions

Why is determining a right IDV important in Car Insurance?

  • The IDV is a crucial factor that determines the claim settlement amount. If the IDV is set too low, the policy holder may not receive adequate compensation in case of a claim, leading to financial loss.
  • On the other hand, if the IDV is set too high, the policy holder may end up paying a higher premium amount

How is the IDV of a vehicle gets calculated?

  • The IDV is calculated based on the manufacturer's listed selling price of the vehicle (including all accessories) minus depreciation based on the age of the vehicle.
  • The IDV of a car decreases as the car ages and it is usually revised downwards during policy renewal

How can I ensure the correct IDV for the car?

  • To ensure the correct IDV for the car, one should take into account the current market value of the vehicle, depreciation based on its age and any accessories that have been added to the car.
  • It is also essential to provide accurate information about the car's make and model to the insurance company

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Blogs

Start-Stop Technology in Cars Explained

What is Start-Stop Technology in Cars and How It Saves Fuel

Posted on 2025-08-20 12:33:38

Think about being stuck at a red light for two minutes. Whether you're moving or not, the engine still uses fuel and emits pollutants while idling. Now, picture the engine turning off on its own when you stop and starting up again right away when you let off of the brake or push the clutch. That's what start-stop technology accomplishes in cars: it saves gasoline and is a great feature for stop-and-go traffic in metropolitan India.

What Is Torque Vectoring and How It Works in Cars

What is Torque Vectoring Technology in Cars and Why It Matters

Posted on 2025-08-19 09:17:34

In simple terms, torque vectoring is a sophisticated drivetrain system that enhances your car's ability to turn more effectively, respond more quickly, and remain more stable, especially at high speeds or in sharp corners. For Indian roads where conditions can shift in a blink—wet patches, potholes, or hairpin bends in the hills—this technology isn’t just about performance; it is about control and confidence. Let's discuss how this technology works, its various types, the benefits, and why more carmakers are bringing it to a wide range of cars, from SUVs to hatchbacks.

Choosing the Right Car for Your Lifestyle

How to Choose the Right Car Based on Your Lifestyle

Posted on 2025-08-18 05:47:19

Choosing a car isn't just about horsepower, headlamps or how it hugs the highway. It’s about how the car fits you. In many ways, your vehicle becomes an extension of your everyday life. It is your 9-to-5 shadow, your weekend getaway partner, and sometimes even your family’s second living room. The decision of how to buy a car should never be rushed, because it has the power to shape everything from your morning commute to your mood on a Monday. When done right, it brings not just utility, but also comfort, identity and even joy. So, how do you find the one that’s right for you?

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Shriram Car Insurance in Major Cities in India

Delhi

Delhi

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Maruthi Wagan R

TN32TY6799

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    VITARA BREZZA ZDI

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