Get Road Side Assistance service on Car Insurance, along with cashless services across 3300+garages.
Escape expenses arising from natural and man-made calamities with comprehensive coverage
Increase your knowledge on car maintenance, car models, car accessories and lots more
A Flexible health insurance plan for your family to suit your needs
An enhanced Sum Insured, designed to supplement your existing health
Worldwide coverage against Accidental Death and Permanent Total Disablement (PTD)
Secures International Travelers against unexpected medical and non-medical expenses
Gives peace of mind to Senior Citizens traveling abroad against medical and non-medical expenses
Secures and relieves Frequent Fliers from unnerving, medical and non-medical expenses
Covers medical and non-medical expenses for students studying abroad
Shield your home structure and
/or contents against naturals
calamities and man-made

Renew your ICICI Lombard Policy here
(Motor, Health or Travel)

Confused about The idv for your vehicle we can help

Nov 10, 2014

Your vehicle is one of your prized possessions. Accidents and mishaps can lead to major expenses and derail your budget. In order to be adequately protected against such misfortunes, you need a comprehensive vehicle insurance plan that provides adequate coverage. This is where Insured Declared Value or IDV comes into the picture.

Insured Declared Value (IDV)

Insured Declared Value (IDV)

Simply put, IDV is the current market value of your vehicle. In a vehicle insurance policy, IDV refers to the highest sum assured payable by the insurer. It is the claim amount you are likely to receive in case of a total loss of the vehicle or an instance of theft. Not knowing the correct IDV of the vehicle might result in the owner of a vehicle receiving an inadequate compensation.

Calculating Insured Declared Value

In order to arrive at the IDV, your insurer uses the following easily available data points:

  • Registration Details
    • City where the Two Wheeler is registered (RTO) - Available on the Registration Certificate
    • First Purchase or Registration Date - Available on the Registration Certificate
    • Current Registration Type - (Individual Owner or Company Owned)
  • Vehicle Details
    • Manufacturer
    • Model
    • Cubic Capacity: (auto populated based on Manufacturer and Model details)
    • Vehicle Description: (auto populated based on Manufacturer and Model details)
    • Ex-showroom Price: (auto populated from a database)

IDV and Premium

The insurance premium payable is directly proportional to the IDV. Hence, as your vehicle ages, the premium decreases. IRDA (Insurance Regulatory and Development Authority) policy states that the maximum declared value for your vehicle can be 95% of its former showroom price. Hence, within six months of purchase, the value of your vehicle depreciates by 5%. Based on the following schedule, the depreciated value of your vehicle is arrived at:

Age of Vehicle

% Depreciation for adjusting IDV

Not exceeding 6 months


Exceeding 6 months but not exceeding 1 year


Exceeding 1 year but not exceeding 2 years


Exceeding 2 years but not exceeding 3 years


Exceeding 3 years but not exceeding 4 years


Exceeding 4 years but not exceeding 5 years


Things to keep in mind while opting for IDV

As explained above, the IDV can fall within a certain range based on the ex showroom price that your insurer has considered. Those unfamiliar with the basics of IDV might opt or a lower IDV because the premium amount decreases slightly - never fall for this trap. For a few hundred extra as premium, don’t sacrifice the IDV by a few thousand.
Similarly, don’t go for a higher IDV thinking that the claim amount will consequently increase. You may also be under the false impression that a higher IDV can bring good returns while selling your vehicle. Please note that while the claim depends on the IDV, it is also influenced by the type of loss.

Disclaimer: Insurance Awareness initiative. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai - 400025. IRDA Reg. No. 115. Toll Free 1800 2666 Fax no - 022 61961323. Email us at Visit CIN: (U67200MH2000PLC129408). EC014AA1950IA

Read More on Car Insurance Information