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May 06 2014

Insured Declared Value or IDV

IDV or Insured Declared Value is the current market value of a vehicle where the maximum assured amount fixed by the insurer will be provided when a vehicles is lost, met with an accident or suffer total loss. During a total loss of a vehicle, IDV is the amount which the insurer will pay to the policy holder.


IDV is calculated by the ex-showroom price of a vehicle minus depreciation.  It also excludes the registration and insurance amount from IDV. If the vehicle’s accessories are not company fitted, are calculated separately at extra cost if insurance is required.


How to calculate IDV?

Refer the chart below to calculate IDV value of a vehicle



Insurance companies calculate the IDV of a car i.e.; the manufacturer’s listing of a vehicle where they add the sales tax and deduct the depreciation cost to make IDV. The calculated IDV value will be the vehicle value during the insurance policy. For example; if a vehicle’s calculated IDV is 10 Lakh then you will get the compensation of 10 Lakh.


The depreciation amount keeps changing with the vehicle’s age. If the car is older than five years or so, then it undergoes a complete check up or survey, according to which the vehicle’s IDV is calculated on a mutual understanding.

If the vehicle is stolen or has suffered total loss, the entire IDV will be compensated, excluding the accessories, registration and insurance costs. If the accessories or a car with CNG kit  which are not company fitted does not come under IDV.

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