How to Calculate IDV of Vehicle
IDV, or Insured Declared Value, is a crucial aspect of vehicle insurance. It determines the sum assured in case of a total loss. Understanding how to calculate IDV of vehicle is essential for getting the right insurance cover.
- Select your vehicle type.
- Enter your vehicle’s age in years.
- Enter your vehicle’s current market price.
- Click ‘Calculate IDV’.
The IDV is calculated using the vehicle’s age and its current market price. The formula varies slightly depending on the vehicle type:
- Cars: IDV = (Current Market Price – (Depreciation % * Current Market Price))
- Bikes: IDV = (Current Market Price – (Depreciation % * Current Market Price))
- Trucks: IDV = (Current Market Price – (Depreciation % * Current Market Price))
| Vehicle Age (years) | Depreciation % |
|---|
| Vehicle Age (years) | Depreciation % |
|---|
- Regularly review and update your IDV to ensure adequate insurance cover.
- Consider factors like make, model, and market trends while calculating IDV.
What happens if my IDV is less than the market value?
In case of a total loss, you’ll receive only the IDV amount, not the full market value.
For more information, refer to these authoritative sources: