ATK
New Delhi [India], March 28: Third-party car and bike insurance is mandatory in India per the Motor Vehicles Act 1988. Whether buying a new car insurance or two-wheeler insurance online, you must be informed about the different terms used during the process. One such term that you should know about while making a motor insurance purchase is IDV or the Insured Declared Value. Wondering what it is? If yes, then continue reading and learn more about IDV, its importance, and the factors affecting it.
What is the Insured Declared Value (IDV)?
Insured Declared Value or IDV in motor insurance refers to the vehicle’s actual value as per the current market. It is also the maximum amount the insurance company compensates when you raise a car or bike insurance claim. For instance, when your vehicle is stolen, the insurance claim amount will be calculated based on the IDV you have chosen. This makes it very important to choose the right Insured Declared Value. The IDV is determined at the time of the purchase of the vehicle and depends on the manufacturer’s selling price and variant. Moreover, you can increase or decrease the IDV by talking to your insurer as it affects the insurance premium rates.
Importance of High IDV While Buying Car Insurance
Here are some of the benefits of having a higher Insured Declared Value in Your Car Insurance plan:
– Minor accidents may not damage your vehicle to a great extent. However, some accidents can lead to serious damages so much that you end up paying hefty amounts. The importance of choosing a higher IDV becomes highlighted in such a case. This is because with a higher IDV, you will get financial compensation for the damages even more.
– In the event that your vehicle is stolen, a higher IDV becomes again very important. When you have a higher IDV specified in your insurance policy, you will receive financial protection to a good extent so much so that it will become easier for you to buy a new vehicle.
– Lastly, choosing a higher IDV ensures greater security and lets you lead a stress-free life. If you already know that you will get financial compensation when your vehicle is damaged, then it becomes so much easier to drive stress-free and stay relaxed.
Factors Affecting IDV of the Vehicle
Listed below are some of the factors that affect the IDV of the vehicle:
– Type of the Vehicle: In today’s automotive world, there are different types of vehicles coming up every day. Some of the popular types of cars include MUVs, SUVs, which generally have a higher market value and thus a higher IDV as compared to other vehicles. Thus, the type of vehicle you buy also affects its IDV.
– Model: Another factor that affects the IDV of the vehicle is the model of the vehicle. Depending on the make and model of the vehicle, the IDV will vary.
– Age of the Vehicle: The age of the vehicle also affects the Insured Declared Value. The older the vehicle gets, its value decreases. As the depreciation takes place, the IDV also decreases irrespective of the type or make and model of the vehicle.
– Accessories: In case you have added any accessories to the vehicle, then its depreciation amount will also affect the Insured Declared Value.
– Place of Purchase: As the ex-showroom price of a vehicle varies from one city to another, so does the Insured Declared Value or IDV.
You can also use an IDV calculator to get the exact IDV by taking the above-mentioned factors into account.
Summing Up
Thus, to conclude, it is advisable to choose a higher IDV for your vehicle so that you get adequate financial protection in case of unforeseen events.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)
