Why is it Important to Consider the IDV while Buying a Bike Insurance Policy?

There are several jargons that you are bound to come across when buying a bike insurance policy. One such term is the IDV which stands for Insured Declared Value. This is one of the most important aspects you need to keep in mind before purchasing a two-wheeler insurance policy.

Let us find out what the IDV is and why it is important.

To know why you need to consider the IDV while buying a bike insurance policy, you need to understand its basic concept. The IDV is the maximum amount of money that an insurance company will be paying the policyholder in case of theft or total damage to the two-wheeler. This would be the highest amount that the insurance company would pay in case you need to make a claim. As you would want to get the most out of your scooter insurance coverage, the IDV is definitely a figure of extreme importance.

How is the IDV calculated?             

When you are looking to buy or renew a bike insurance policy, the IDV of your bike will generally be calculated by adjusting the standard rate of depreciation with the manufacturer’s market value of the bike. These are the factors that insurance companies consider while calculating the IDV:

  •         Bike registration details
  •         Model of the vehicle
  •         Vehicle description
  •         City in which the vehicle is registered
  •         Manufacturer
  •      Ex-showroom price  


Original Content - Why is it Important to Consider the IDV while Buying a Bike Insurance Policy?

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