Know Critical Facts About The IDV Of Your Two-Wheeler

two-wheeler idv

One of the most important components of a bike insurance policy is its ‘Insured Declared Value’. IDV has a direct impact on the cost of your bike insurance premium. Simply put, it is the maximum compensation amount (sum assured) that the policyholder receives from the motor insurance company at the time of claim settlement. This value is fixed by the bike insurance provider and is similar to the market value of your motorcycle that changes at the time of 2-wheeler insurance renewal.

Basically, it is the current market value of your two-wheeler IDV is the amount that the insurer will compensate if your 2-wheeler is declared as a total loss.

With a simple formula, you can derive the Insured’s declared value of your bike: Subtract the depreciation of the vehicle’s parts from the manufacturer’s listed selling price. Furthermore, the registration cost and the insurance cost are also deducted while evaluating the IDV of a 2-wheeler. And the calculation of non-fitted factory vehicles is also done separately. And to know the premium amount for the selected plans, you can use the online bike insurance calculator.

Once you place your query for bike insurance renewal or purchase, you will get different quotations to choose from. But in certain cases, the value may not match with the bike’s current condition and due to this reason; you will end up getting lesser compensation at the time of claim.

The Insure Declared Value of a new bike is fixed on the basis of its listed selling price given by the manufacturer for the specific motorcycle brand and model.  But when you are getting your bike insurance renewed, the depreciation value is also considered.

All the above-mentioned factors play an important role in determining the Insured Declared Value of a bike at the time of renewal. And to be able to buy the best plan, it is important for you to know such details.

What Happens to Your Bike Once It Steps Out of The Showroom?

The prices of a vehicle fall as soon as it is taken out of the showroom.  Its IDV also gets affected with the depreciation factor kicking-in.

Within six months of the purchase, the entire value of the bike approximately falls down by 5 percent.  And the value is decreased subsequently. And it is something that your bike insurer would consider while providing you insurance cover.

How IDV of a Two-Wheeler is Affected?

There are various factors that affect the IDV of a bike, which is inversely proportional to the age of your bike. Therefore, the more the age of your bike, the lower will be its IDV.

And the IDV decreases due to the depreciation of your vehicle’s parts. Look at the below-mentioned table to understand the dynamics between the IDV and the age of your bike.

Age of the Bike

Depreciation Value (in %)

Lesser than 6 months 5
Between six months and one year 15
Between one year and two years 20
Between two years and three years 30
Between three years and four years 40
Between four  years and five years 50

Along with the bike’s age, its make and model will also have an impact on its Insured Declared Value.

Always Disclose the Current IDV of Your Two-Wheeler

Make sure that you disclose the correct IDV because it has a direct impact on the bike insurance premium. In fact, the claim settlement amount in case of theft and accidental damage is also based on the IDV of the 2-wheeler.

Many people make the mistake of reducing the IDV to reduce the premium amount. Refrain from doing so, as it will cost you a hefty amount in the future. While settling the claim, your bike’s IDV will be considered (not the current market value).

Having a low IDV can prove to be a costly affair when filing a theft claim. The Insured Declared Value should be closer to the market value if you want to get the right compensation for any accidental damage or theft.

And if your bike is more than five years old, you can mutually decide its IDV with the insurer.

Points to Remember

Have a look at some important tips for you to carefully assess the IDV of your two-wheeler:

  • Cross-check the IDV set by your bike insurance provider.
  • Also, check the premium amount and check if it has been calculated correctly on the basis of the IDV of your bike.
  • It is essential to buy the right plan that offers you satisfaction in terms of IDV for your precious bike. You can negotiate with the insurer to avail some discounts. You can compare different two-wheeler insurance plans and buy the one you like online. One such example is Shriram bike insurance; you can buy it to get maximum coverage at a lower premium.
  • While purchasing 2-wheeler insurance, make sure that the premium is determined on the basis of the IDV. Because you might end up paying a higher premium for a low-cost bike if the market value equated to the bikes IDV is comparatively higher.

Some motor insurance providers give you an option to fix the bike’s IDV online, get it adjusted and the select the right plan.


Clearly, the Insured Declared Value plays a very important role in determining the bike insurance premium at the time renewal/purchase and the compensation amount (sum assured) at the time of settling the claim.

That is why it is advised that you declare the right value of your bike and only pay the justifiable amount. There are various vehicle insurance companies offering great deals and online guidance to find the best possible option. Compare all the options to make an informed decision! This way you will save money and will be able to find a plan that works just right for you.