How is the IDV Value Calculated for Bike Insurance?
In Bike Insurance, What Does IDV Mean?
Regarding bike insurance, insured declared value (IDV) refers to the sum you would be entitled to from the insurer in case of your bike’s total loss. Total loss occurs when a bike is stolen or suffers such severe damage that it cannot be repaired. The bike’s current market value is also included in the insured declared value. It is not the resale value; instead, it is an estimate. So, if you’re wondering, “What is IDV in two-wheeler insurance,” you can think of it as the bike’s total amount insured. You can find all the details using your bike insurance check app.
Value Of The IDV
The purpose of IDV is to calculate the premium and determine the amount the insurance company may pay you if your insured vehicle sustains irreparable damage or is stolen, not to determine the resale value of the two-wheeler. Totalled or Total Loss is the formal term for it.
IDV As A Tool For Valuation
In the case of a Comprehensive Bike Insurance Plan, IDV is relevant. The insurance regulator IRDAI (Insurance Regulatory and Development Authority of India) sets the premium rates for third-party bike insurance. IDV can be used in a comprehensive insurance plan as a bike valuation tool for new and used bikes. #
How Do You Calculate Your Bike’s IDV?
To know the sum assured amount that the insurer may pay you in the event of a total loss, you must be aware of the IDV of your motorcycle. To determine how much of a premium to charge for your two-wheeler, your insurance provider needs to know its IDV. The premium is typically higher the higher the IDV. Therefore, choose the appropriate IDV for your bike. IDV calculation for a two-wheeler is simple. By visiting your insurer’s website or bike insurance check app and following the instructions, you can find your bike’s IDV in under a minute.
Depreciation’s Function In IDV Calculation
Depreciation is another technical term that significantly influences the IDV and the payable premium. As a result, it is also essential in terms of claim settlement. For instance, You spend Rs. 50,000 on a bike. What will happen to the bike’s value in six months? Will it grow or decline? It will get smaller. This results from an asset depreciating over time and being subject to wear and tear. You can check your IDV using an online bike insurance app. Make sure you follow the process to download thebike insurance check app.
How Is IDV For Two-Wheeler Insurance Calculated?
It is simple to determine IDV for a two-wheeler insurance policy. All you need to do is use a straightforward formula, gather the information to be included in the procedure, and calculate.
Insured Declared Value with Additional/Externally Fitted Accessories = (Price of the Bike – Appropriate Depreciation Value) + (Price of Externally Fitted Accessories for Vehicle – Their Depreciation Value).
Make sure you use your bike insurance checking appfor more details.Without accessories, the insured declared value equals the bike’s purchase price less the appropriate depreciation value. Consider the manufacturer’s suggested retail price (ex-showroom listed price) as the bike’s price.
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#Visit the official website of IRDAI for further details.
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