Insured Declared Value(IDV) for Two Wheeler

Two Wheeler Depreciation Schedule

The depreciation is calculated based on the vehicle's age and the percentage of depreciation applied on the vehicle.

The Depreciation Percentage of a Two-Wheeler is as Following:

Depreciation above five years on a two-wheeler is calculated based on the serviceable state of the vehicle as well as the condition of its body parts. The overall average amount is calculated from various components of the vehicle to determine the two-wheeler's IDV. The IDV for a two-wheeler older than five years or an outdated model, is decided after mutual agreement between the insured and the insurer. Some insurance companies refer to surveyors to determine the two-wheeler's IDV. In such cases, the insured may have to pay an additional cost for the survey.

Importance of (IDV)Insured Declared Value

An IDV is basically a compensation amount that is paid to the insured, for the two-wheeler that has been stolen or damaged beyond repair. A rational value must be finalised on, which is close to the vehicle's market value so that the compensation matches the cost of damage incurred. Typically, insurers offer to decrease IDV in the range of 5% to 10%, as chosen by the customer. Lower IDV would mean a lower premium.

It is important to choose an insurer offering a lower IDV. Therefore, you can compare different insurers by keeping a constant IDV value in your mind. In case of an accident, the IDV decides whether or not the two-wheeler insurance policy is beneficial. At the time of the claim, the age of vehicle is the deciding factor for determining your IDV. 

Factors Affecting the Insured Declared Value of the Two-Wheeler

The below-listed are some of the factors affecting IDV of two-wheeler: 

1. Age of the Vehicle: As your bike ages, its market value depreciates, leading to a lower IDV. New bikes typically have higher IDVs due to their higher market value. 

1. Two-wheeler Model: Premium or high-end models generally have higher IDVs compared to standard models, reflecting their higher market prices.

1. Depreciation: Standard depreciation rates are applied based on the vehicle's age to calculate its current market value, directly affecting the IDV.

1. Registration Details: The registration date and location can influence the IDV, as market values may vary across different regions.

1. Modifications and Accessories: Adding accessories or making modifications can increase your bike's value, potentially raising the IDV. However, these additions should be declared during insurance purchase for accurate assessment.