An IDV Calculator (Insured Declared Value Calculator) is a tool used in motor insurance to determine the current market value of a vehicle. This value becomes the sum insured under your insurance policy and directly impacts both your premium and claim amount.
What is IDV?
- IDV (Insured Declared Value): The maximum claim amount your insurer will pay if your vehicle is stolen or suffers total loss.
- It represents the market value of your vehicle after deducting depreciation.
How is IDV Calculated?
Formula:
IDV = Ex-Showroom Price – Depreciation (based on vehicle age)
Standard Depreciation Rates (as per IRDAI)
- 0 – 6 months: 5%
- 6 months – 1 year: 15%
- 1 – 2 years: 20%
- 2 – 3 years: 30%
- 3 – 4 years: 40%
- 4 – 5 years: 50%
- Beyond 5 years: Mutually decided between insurer and vehicle owner
Example
- Ex-showroom price of your car: ₹10,00,000
- Vehicle age: 3 years
- Applicable depreciation: 30%
- IDV: ₹10,00,000 – ₹3,00,000 = ₹7,00,000
Why is IDV Important?
- Determines your insurance premium
- Sets the maximum claim amount
- Helps avoid underinsurance or overinsurance
Choosing the right IDV ensures balanced premiums and fair claim settlements. With Doorstep Bima’s IDV Calculator, you can easily estimate the correct value for your vehicle and make informed insurance decisions.
