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What is IDV

In case of motor insurance the sum insured is the
insured's declared value [IDV]. It is the value of the vehicle, which is
arrived at by adjusting the current manufacture's listed selling price of
the vehicle with depreciation percentage as prescribed in the IRDA
regulations. Manufacturer's listed selling price will include local duties /
taxes excluding registration and insurance.
IDV = (Manufacturer‟s listed selling price – depreciation) + (Accessories that
are not included in listed selling price-depreciation) and excludes
registration and insurance costs.
The IDV of vehicles that are obsolete or aged over 5 years is calculated by
mutual agreement between insurer and the insured. Instead of depreciation,
IDV of old cars is arrived at by assessment of vehicle‟s condition done by
surveyors, car dealers etc.
IDV is the amount of compensation given in case a vehicle is stolen or suffers
total loss. It is highly recommended to get IDV which is near the market  value of the car. Insurers provide a range of 5% to 10% to decrease IDV to
the insured. Less IDV would mean lesser premium.