There are essentially two different types of bike insurance policies available in the market to satisfy various needs of the insurance buyers. While a third-party liability cover is compulsory as per the Motor Vehicles Act, it offers basic insurance coverage. As a result, it attracts affordable premium rates. The insurance market also offers a comprehensive insurance cover that attracts a higher premium rate. It is because it provides comprehensive insurance coverage.
While having a bike insurance policy is mandatory in India as per law, most of the people settle for a basic insurance policy to cut premium costs. Having said that, the insurance premium for a bike insurance policy is computed on the basis of various factors and IDV is one of them.
What is Insurance Declared Value (IDV)?
Insured Declared Value is simply known as IDV. It is a very imperative factor to be noted when buying a bike insurance policy. It affects the insurance coverage that you are entitled to get from your insurance provider at the time of filing a claim. As mentioned before, IDV is one of the most crucial factors that determine your two-wheeler’s insurance premium.
IDV Calculator for Bike Insurance
For two-wheeler vehicles, the IDV calculator displays result on the basis of the bike manufacturer’s selling price. It is calculated before buying an insurance policy. Additionally, it is calculated at the time of renewing the bike insurance taking into consideration the market value of the vehicle. While computing IDV, adjustments of the depreciation value are done accordingly.
The Insured Declared Value does not include expenses towards insurance and registration. In case the insurance policy covers accessories, then the insurance company calculates IDV separately at an additional cost.
Importance of Insured Declared Value (IDV)
As mentioned above, the Insured Declared Value (IDV) is the sum of money that the policyholder gets from the insurance company in case of damage/theft to the insured bike. When the policyholder files for a claim settlement, the insurance company takes into account how old the bike is.
Bike Insurance Premium Calculator
A bike insurance calculator is a tool that assists a prospective bike insurance buyer to know the insurance premium he/she will have to pay as per his coverage needs and demands. Thus, it helps the bike insurance buyer to analyze and compare quotes from the different insurance company. It helps them to select the best plan amongst the various plans available in the market. It essentially helps to buy the best bike insurance plan at an affordable premium rate that satisfies the insurance buyer’s demand.
If you wish to use the bike insurance premium calculator online, then you will be required to furnish certain details in order to get premium quotes from different insurance companies. The list of the information required is as follows:
- The number of the bike you wish to get insurance for.
- If you have any previous bike insurance policy, then it’s current Status- whether the previous policy is expired or not expired.
However, if you are not really sure about the bike’s registration number, then you will have to provide additional details to get the premium quotes. The additional information required is as follows:
- The manufacturer details of the bike.
- The year of bike’s registration.
- The bike’s model and its variant.
- Regional Transport Office Location (RTO) of the bike.
Over to You
Having a bike insurance plan helps you to get much-needed financial assistance from the insurance provider in the time of need. Thus, you will be able to save a decent amount of money in the future. You will not have to bear the heavy expenses, in the long run, thanks to the insurance coverage provided by your insurance plan.
The insurance premium that you have to pay for your plan is computed on the basis of various factors and IDV is one of them. Higher IDV attracts a higher premium and lower IDV attracts a lower premium. At the time of buying a bike insurance plan, make sure you disclose the right IDV as disclosing wrong IDV can end up in claim rejection by the insurance provider.