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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
How to Calculate 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 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)
Frequently Asked Questions
Why is determining a right IDV important in Car Insurance?
No, Comprehensive Car Insurance is not mandatory. However, Third-Party Car Insurance is mandatory by law.
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 age s and it is usually revised downwards during policy renewal
How can I ensure the correct IDV for the car?
Yes. Please use an online premium calculator for an estimate. The cost of your Shriram Car Insurance depends on factors like your car's make, model, year, Insured Declared Value (IDV), type of insurance, and any additional features you select. These factors are considered to determine your car insurance premium.
