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Bike insurance is an essential requirement for riders, but choosing the right insurance policy can be a confusing process. One of the important factors to consider while buying a bike insurance policy is the Insured Declared Value (IDV). IDV is considered to be the current market value of your bike and has a significant impact on the premium you pay for your insurance policy. In this article, you’ll learn about the impact of IDV on your bike insurance and how it can affect the coverage and benefits offered by your policy. *
Read on.
What does a bike insurance IDV stand for?
The amount an insurer will pay in the event that your bike is stolen or completely lost is known as the “insured declared value” in the context of bike insurance. *
The following is the formula for two-wheeler IDV:
IDV is equal to (the bike’s quoted selling price minus its depreciated value) plus (MRP of additionally fitted accessories – the depreciated value of the additional accessories)
How does IDV affect renewing bike insurance?
The vehicle’s IDV is its current market value. The IDV of a bike is negatively correlated with the bike’s age and is dependent on a number of variables. *
The following elements go toward assessing your vehicle’s IDV:
- Model and make of the bike
- Fuel kind
- The bike’s age
- Depreciation
In simple words, one of the major variables, namely depreciation, causes the IDV to decline with time. It means that the IDV will be higher the younger the car is. *
Why IDV disclosure is important during policy renewal?
The right IDV must be disclosed because it has a direct impact on the cost of your bajaj allianz two-wheeler insurance. Ideally, you shouldn’t ever set an IDV higher than your existing IDV when renewing your bike insurance. You should either choose a dollar number that is less than your current IDV or one that is the same as your current IDV. *
For instance, in 2022, your bike’s IDV was Rs. 81,000. You should never increase the IDV on your policy renewal in 2023 beyond Rs. 81,000. Because your bike will lose value due to wear and tear over time, always choose an IDV that is lower than or equal to your present IDV.
You must bear in mind that in the event that a theft occurs or total loss of the two-wheeler, your insurer will not give you a settlement amount greater than your predetermined IDV. A low IDV can cost you money when you claim bike insurance for theft or total loss. *
Additionally, the insurer and insured agree on the IDV of a vehicle that is more than five years old. In India, some insurers provide you with the choice of adjusting your IDV online. The ideal time to do so is during the renewal of your bike insurance, so make sure you take advantage of the opportunity. *
In the end, the IDV is important, especially when renewing bike insurance. Declare the right value at all times to avoid receiving less money than normal when your claim for bike insurance is settled. *
The Insured Declared Value (IDV) plays a crucial role in determining the premium for your bike insurance policy. A higher IDV means a higher premium, but it also offers more coverage in case of theft or damage to your bike. It’s important to carefully evaluate your bike’s IDV and choose the right insurance policy that offers the best coverage at an affordable premium. By understanding the impact of IDV on your bajaj 2-wheeler insurance, you can make an informed decision and ensure adequate protection for your prized possession. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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