Knowledge Base Car Insurance Insured Declared Value (IDV)
Thursday, 17 February 2011 18:44

Insured Declared Value (IDV)

Written by  Yashish Dahiya
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Insured Declared Value (IDV)

Insured Declared Value is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder.


IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted, are calculated separately at extra cost if insurance is required for them. The depreciation schedule is as follows:

Age of Vehicle % Depreciation for adjusting IDV
Not exceeding 6 months 5%
Exceeding 6 months but not exceeding 1 year 15%
Exceeding 1 year but not exceeding 2 years 20%
Exceeding 2 years but not exceeding 3 years 30%
Exceeding 3 years but not exceeding 4 years 40%
Exceeding 4 years but not exceeding 5 years 50%

The IDV of vehicles aged over 5 years is calculated by mutual agreement between insurer and the insured. Instead of depreciation, IDV of old cars is arrived at by assessment of vehicle’s condition done by surveyors, car dealers etc.

IDV= (Manufacturer’s listed selling price- depreciation) + (Accessories that are not included in listed selling price-depreciation) and excludes registration and insurance costs.

Why is IDV important?

As explained, IDV is the amount that you will get in case your vehicle is stolen or suffers total loss. It is highly recommended to get IDV which is near the cost of market value of car. Insurers provide with range of 5% to 10% to decrease IDV which could be chosen by customer. Less IDV would attract less premium.


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  • Comment Link ratan Thursday, 29 September 2011 09:00 posted by ratan

    agar kisi byk ki r.c.transfer ho -or insurance policy nahi tranfer ho or is beech total- loss- to kya hum claim enimate kar payenge or agar ha to jis nam se rc tran us nam se ya jo nam policy me hai

  • Comment Link S.C. Jolly Saturday, 01 October 2011 11:04 posted by S.C. Jolly

    Normally what value is taken at the time of purchase of a car.Supposing the price at the time of purchase is Rs.6.3 lacs.?what will be idv.

  • Comment Link swaroop Monday, 14 May 2012 16:48 posted by swaroop

    my car is 22 months old and its cost at time of purchase was 25 lac n my now my car has suffered total loss how much money will i get ?

  • Comment Link Administrator Tuesday, 15 May 2012 10:35 posted by Administrator

    Hi Swaroop
    The maximum amount you can get is the insured amount. The insured declared value (IDV) is given in your policy documents. IDV is the maximum amount you can get.

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