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How Is Idv Value Calculated?

Insured Declared Value (IDV) is the maximum sum assured fixed by the insurer for motor insurance. It is calculated by subtracting the depreciation from the manufacturer’s listed ex-showroom price of the vehicle. For any non-factory fitted accessories, their value is added before applying the age-based depreciation. The depreciation rate ranges from 5% for new vehicles to 50% for those aged five years. This value represents the compensation provided in case of total loss or theft.

How Does IDV Value is Calculated?

Insured Declared Value (IDV) represents the maximum sum assured for a vehicle. It is calculated by subtracting the depreciation from the manufacturer’s listed selling price. The depreciation percentage increases as the vehicle ages, starting at 5% for new cars. Accessories not fitted by the factory are calculated separately with additional depreciation. This value determines the compensation in case of total loss or theft. It does not include registration or insurance costs.

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