How To Derive IDV?

lorem ipsum admin     17-03-2018

Insured Declared Value IDV is the sum assured value in the vehicle insurance policy. IDV in vehicle insurance gets calculated basis the manufacturer's listed price of a particular vehicle and adjusting current selling price of the vehicle with depreciation percentage as prescribed in the rate grid. It is the maximum sum insured compensated on theft, loss or complete damage to the vehicle by the insurer.

IDV is calculated depending on factors such as age, make and brand of the vehicle. IDV decreases for each year at the time of renewal of the vehicle insurance. Insurance Regulatory & Development Authority (IRDA) which regulates the insurance industry in India, has set the IDV of the vehicle as 95% of its ex-showroom price. With an increase in the age of the vehicle the depreciation also increases. IDV of the new vehicle will be high and as the vehicle gets older, IDV will go down.

Vehicle age IDV
Between 0 to 6 months 95% of the Ex-showroom price
Between 6 months to 1 year 85% of the Ex-showroom price
Between 1 year to 2 years 80% of the Ex-showroom price
Between 2 years to 3 years 70% of the Ex-showroom price
Between 3 years to 4 years 60% of the Ex-showroom price
Between 4 years to 5 years 50% of the Ex-showroom price

 

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