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What Is Meant By IDV In Bike Insurance

Most bike owners do not know what IDV is and how it impacts their insurance premiums. You must buy bike insurance with all the relevant information in your hands. Don't worry; this article will answer all your IDV questions.<br><br><br>

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What Is Meant By IDV In Bike Insurance

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  1. What Is Meant By IDV In Bike Insurance? topgeneralinsurancebrokersinindia.blogspot.com/2023/07/what-is-meant-by-idv-in-bike-insurance.html Most bike owners do not know what IDV is and how it impacts their insurance premiums. You must buy bike insurance with all the relevant information in your hands. Don't worry; this article will answer all your IDV questions. IDV stands for Insured Declared Value, which is the maximum amount that an insurance company will pay out during a claim settlement. It is a vital point to consider when choosing an insurance provider because you do not want a situation where you are underinsured and unable to receive adequate compensation for your losses. Calculate IDV Before You Buy Bike Insurance Your insurance provider from whom you plan to buy bike insurance will have a calculator for IDV on their website. This calculator will save a lot of your time because if you were to calculate it manually, you would need to consider multiple factors. Firstly, you would need to consider the listed selling price from the manufacturer for the two-wheeler. It is calculated when you first purchase the insurance policy, and after that, it is constantly adjusted based on the vehicle's depreciation during each policy renewal. This calculator acts as the perfect tool to help you get the market value of your bike so that you can determine the insurance premium you need to pay. You can also insure accessories that the bike manufacturer does not produce. IDV is separately calculated at an additional cost by the insurer for this feature using the IDV calculator. Also, the calculator helps you find out the exact payout amount you will likely get if the total repair cost reaches more than 75% of IDV or the bike is stolen. ● Calculating IDV for the bike IDV = Bike MRP - Depreciation Value ● Calculating IDV For Bike and Additional Accessories 1/3

  2. IDV = (Bike MRP - Depreciation Value) + (Cost of Accessories - Depreciation Value of Accessories) ● Rate of Depreciation for Two-Wheelers Age of the Bike Rate of Depreciation Less than six months old 5% More than six months old but haven’t reached a year 15% Reached one year of age but less than two years 20% Reached the second-year mark but less than three years 30% Reached the third-year mark but less than four years old 40% Reached the fourth year but less than five years 50% Importance of the IDV in Bike Insurance When you buy bike insurance online, check out the IDV to know the actual value of your vehicle. Below are some critical reasons that solidify the importance of IDV for bike owners. ● Assessing the correct market value of the bike IDV helps the policyholder get the real market value of the bike, which the owner does not often know. It is so because the market value depends on the bike's design, its model, the registered city, and the bike's cc. ● The premium depends on IDV Your insurance premium will depend on a majority of factors, and IDV is one such factor. ● The claim amount depends on IDV The IDV refers to the highest amount you can claim in case of damages to your vehicle. Factors that Affect IDV in Bike Insurance Have you used the IDV value of the bike calculator? If not, you should try it now. These are some of the factors that the calculator uses to assess the value of your bike: ● The brand and model of your motorcycle ● The registration date of your motorcycle 2/3

  3. ● The city where you registered your motorcycle ● Fuel type your motorcycle utilizes ● Age of your motorcycle ● Category of your motorcycle insurance ● Duration of your motorcycle insurance policy What is the Difference Between IDV and Premium? Knowing the correct IDVis very important for every bike owner. You must also know how to increase the IDV value of your bike. If an insurance provider gives you an offer to lower your insurance premiums in exchange for you lowering the IDV value, you must never accept it. It is so because, in case of a total loss or a theft, the insurer will pay you according to the lowered IDV. That means your IDV is directly proportional to your insurance premiums. Conclusion Remember that you are paying for the insurance to financially rescue you in a situation of total loss or theft. Your IDV will determine the amount you get from the insurer. Thus, it is crucial always to prioritize IDV when buying bike insurance. 3/3

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