• Declaration Value of Your Two Wheeler

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    Only you know the value of your bike, the real value. It is your blood and sweat. A thing of pride. The basic third party insurance that the law requires you to buy is just not enough when it comes to your hard earned vehicle. What you need is a comprehensive coverage that will protect it completely; to compensate for any third party damages that you may cause but will also cover your vehicle’s damages.

    How Does IDV Impact Bike Insurance Policy Choosing Different IDV Than The Market Value IDV Calculation For Two Wheeler Insurance IDV During Policy Renewal
    Declaration Value of Your Two Wheeler

    A comprehensive insurance policy contains two parts: own damage (OD) and third-party. OD is the cover you will receive for damages/loss of your own vehicle (including accidental damages, man-made calamities and natural calamities). Third-party cover takes care of the liability the insured will have to face to compensate for damages to other people. This includes accidental damages which results in the death of a person or serious/permanent injury of a person. This also covers damages to the surrounding property that you have caused. The premium of your bike is calculated by the insurance company using the “Insured Declared Value” (IDV). The third party premium is calculated according to the vehicle category. This is unrelated to the IDV of the vehicle.

    Premiums tend to escalate because of the inflation rates. So what can you do to save on your bike insurance premium . One possibility is to buy anti-theft devices and take advantage of a premium discount. If you have been lucky throughout the year and did not meet with any accidents, you will be eligible for no claim bonus benefits. No claim bonus can come in the form of discount in premium rates or additional coverage. One of the common mistakes that customers tend to do is accept unfavorable means. It is important that you know the IDV value of your vehicle because it is the crucial deciding value for the insurance premium of your vehicle.

    How Does IDV Impact A Two Wheeler Insurance Policy:

    The insured declared value plays a vital role in the determination of your premium amount and the amount you receive on your insurance claims. The greater the IDV of your motorcycle is, the greater will be the premium to be paid. The IDV is the basis for determination of premium.

    Choosing A Different IDV Than The Market Value:

    You can adjust the IDV in two ways. Either you can choose a higher IDV than the market value of your bike or you can choose a lower IDV. Both the scenarios will have a different impact on your premium and claim amount.

    • Choosing A Lower IDV:

      If the IDV chosen by you is lower than the market value of your bike, the premium to be paid on your insurance too will be less as it is directly proportional to the IDV. A lower IDV can help you save some premium cost but in case you ever make a claim, the compensated amount too will be less and you might have to make high expenses from your pocket.

    • Choosing A Higher IDV:

      IDV is the maximum sum assured by an insurer in case of a complete loss of your vehicle. If you choose a higher IDV, you will get a higher compensation in case of claims, but you will also be required to pay a higher premium on your insurance policy. It is also to be noted that a higher IDV will not help you sell your vehicle at a higher price than the market value of the same.

      Thus, it is the most feasible to choose an IDV which is close to the market value of your two-wheeler. This way you can pay the reasonable amount of premium on your policy and claim the right compensation at the time of claims.

    Calculation of IDV For Two Wheeler Insurance

    IDV is the highest amount that an insurer is liable to pay in case of a complete loss of your bike or scooter. The IDV of your motorcycle depends on the listed selling price of the bike model you own by the manufacturer. It also takes into account the depreciation that the vehicle has gone through based on the age of the vehicle.

    Check The IDV During Policy Renewal

    At the time of insurance renewal, do check whether the premium you are paying on your two-wheeler insurance is justifiable as per the IDV of the vehicle. If you are dissatisfied with the IDV offered by your insurer or the premium amount to be paid, you may always negotiate with the insurer and get the coverage you are looking for.

    What do you know about the IDV of your two wheeler? Here is a basic explanation for those who are in the woods about IDV: IDV is the sum insured and is decided upon at the beginning of each policy period of the insured vehicle. IDV is calculated based on the manufacturer’s listed selling price of the model and brand. Then, the standard deprecation rates as per Indian Motor Tariff is then used to come up with the final value of the bike. IDV, in other words, is the maximum amount that your insurance company will pay when you make a claim. This is the maximum that you will be paid if your vehicle has undergone total loss, vehicle is stolen, constructive total loss and/or repair of the vehicle is greater than 75% of IDV. You must keep in mind that the rate of depreciation escalates with the age of the car. That means, if you make a claim for a new car, you will be given the maximum IDV. However, as the vehicle ages, the rate of depreciation keeps increasing. The age of the vehicle is the standard metric which decides the rate of depreciation. Thus the older the vehicle, the less the value. If your two wheeler is more than 4 years old/or is an obsolete model, you cannot expect much from the insurer.

    When the IDV is calculated (at first purchase or while you do policy renewal), the price at the time of purchase of the vehicle is not considered but the current selling price of the model and brand is considered. You should be careful not to declare a lower IDV than the rational market value. If you happen to do so, and you happen to make a claim for total loss, the amount you receive will not be what you should be getting since the IDV declared was lower. Further, you can save on the long run if you declare the right amount, and not try to save a little on the premium by declaring a lower IDV. Making sure that you make the right IDV declaration will make sure that you get the maximum amount in the event of your vehicle being stolen or if you make a large claim.

    If you think that you can cheat the insurer by simply declaring a high IDV, and thus be able to claim a higher amount, you will be mistaken. The same applies if you think that you will be able to get a high amount while selling the vehicle. This is because when the claim is processed, the age of the vehicle will be considered by the insurer. Thus the depreciation before finalizing the claim will depend on this. Consequently, you will end up receiving a low claim despite of the high IDV that you declared. In conclusion, make sure that when you declare the IDV for your vehicle, it is in sync with the model and age of the vehicle.

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    Declaration Value of Your Two Wheeler Reviews

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    • Bajaj Allianz Two Wheeler Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have my two wheeler insured with Bajaj Allianz from last 6 months, i am happy with the coverage value of this insurance policy. I have not claimed anything so far from this insurance policy. I pay a premium of Rs 1200 which has to be paid every year for this insurance policy.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • Bajaj Allianz Two Wheeler Insurance
      "Good Policy"
      0.5 3.0/5 "Satisfactory"
      I have a health insurance with Bajaj Allianz from last 1 year, i am happy with the coverage value of this insurance policy. I am not aware of the premium amount as my company pays it. I have no claim experience so far with this insurance and i have a coverage of Rs 4 lakhs for this insurance.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jun 21, 2018
    • National Insurance Two Wheeler Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have my two wheeler insured with National insurance from last 5-6 years, i am happy with the coverage value of this insurance policy. I pay a premium of Rs 1200 which has to be paid every year for this insurance and i have not claimed anything so far from this insurance.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jun 21, 2018
    • ICICI Lombard Two Wheeler Insurance
      "Average policy"
      0.5 4.0/5 "Great!"
      I have taken a two wheeler insurance policy in the ICICI . Whenever i visit the petrol, i used to take the insurance over there. I never claimed the policy so far. I used to pay the premium amount of Rs. 800. I used to make the payment through cash. I'm not aware of the plans and benefits of the policy. I have taken this policy 1 year.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 20, 2018
    • Oriental Insurance Two Wheeler Insurance
      "Good Service so far"
      0.5 5.0/5 "Blown Away!"
      I've a bike insurance policy with the Oriental Insurance Company, I pay a premium of 1600, I do not have any claim experience with the policy. So far it has been a good experience with the policy. I'll have to wait and see how they respond to my claim in case if I'll have any in future.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jun 20, 2018
    • United India Two Wheeler Insurance
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I've been using the United India Bike insurance for a while. I am paying a premium of 1180 per year. I am paying it office. The service is a good. There is no Claim experience with this policy. This policy only covers metal parts of the bike. Overall it has been a hassle free experience with the United India.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 20, 2018
    • ICICI Lombard Two Wheeler Insurance
      "Good policy"
      0.5 3.0/5 "Satisfactory"
      The premium which i have to pay for my two Wheeler insurance is 2500 for 2 years. The policy has been taken from ICICI Lombard. They provide 100% coverage and accidental coverage. I have no claim for my two wheeler. Its a good policy.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jun 20, 2018
    • HDFC Ergo Two Wheeler Insurance
      "Good policy"
      0.5 4.0/5 "Great!"
      I have my two wheeler insured with HDFC ERGO from last 1 month, i am happy with the coverage value of this insurance policy. I have not claimed anything so far from this insurance policy. A premium of Rs 1470 has to be paid for this insurance policy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 20, 2018
    • Bajaj Allianz Two Wheeler Insurance
      "Wonderful"
      0.5 5.0/5 "Blown Away!"
      I have insured my two wheeler with the Bajaj allianz general insurance company. I would like to say that the premium amount is around 5500 Rupees. Customer service is good and the response is nice one too with the Bajaj allianz general insurance company.
      Was this review helpful? 0
      , pune
      Reviewed on Jun 20, 2018
    • ICICI Lombard Two Wheeler Insurance
      "Good "
      0.5 4.0/5 "Great!"
      I am having the two wheeler insurance policy with the ICICI Lombard general insurance company. I have paid around 1100 Rupees as premium. I have not faced any claims with them till now and everything is better one with the ICICI lombard general insurance company.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 20, 2018
    • National Insurance Two Wheeler Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have my two wheeler insured with National insurance from last 20 years and it is one of the good policy. I have not claimed anything so far from this insurance policy. I am happy with the coverage value of this insurance policy and i pay a premium of Rs 750 for this insurance.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Jun 19, 2018
    • Iffco Tokio Two Wheeler Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have a two wheeler insurance with IFFCO TOKYO from last 1 year, i am happy with the coverage value of this insurance policy. I have not claimed anything so far from this insurance policy. A premium of Rs 1100 has to be paid every year for this insurance policy.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 19, 2018
    • Iffco Tokio Two Wheeler Insurance
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I have insured my two wheeler with the Iffco tokio general insurance company. I would like to say that the customer service is good one too with them and everything is super one too. I am happy with the Iffco tokio general insurance company till now.
      Was this review helpful? 0
      , vijayawada
      Reviewed on Jun 19, 2018
    • Bajaj Allianz Two Wheeler Insurance
      "Average"
      0.5 3.0/5 "Satisfactory"
      I am using two wheeler insurance policy from the Bajaj Allianz general insurance company. I would like to say that the customer service is good one and the coverage value is around twenty five thousand Rupees to thirty thousand Rupees.
      Was this review helpful? 0
      , guntur
      Reviewed on Jun 19, 2018
    • ICICI Lombard Two Wheeler Insurance
      "Excellent Claim Experience"
      0.5 5.0/5 "Blown Away!"
      Once i have a claim experience with ICICI. I can claim around 15K from this insurance. The claim process is very smooth process. They have a cashless claim facility. Their people will take care of the claim. Whatever the amount i can reimburse in this policy it has met. I have paid the premium around Rs.1100 every year.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 18, 2018
    • ICICI Lombard Two Wheeler Insurance
      "Good Service"
      0.5 4.0/5 "Great!"
      I've been using the ICICI Lombard bike insurance for a while. I pay a premium of 9000 per year, the features are good but the premium is bit high when comparing to other insurance providers. I do not have any claim experience with the policy. I never faced any issues with the payments too.
      Was this review helpful? 0
      , thane
      Reviewed on Jun 18, 2018
    • HDFC Ergo Two Wheeler Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      I have taken two wheeler insurance from Hdfc ergo general insurance for this. I made the payment for 2 years through on line banking . Customer service and response is good . It has good policy coverage with good policy benefits like vehicle towing and cashless garage.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jun 17, 2018
    • Iffco Tokio Two Wheeler Insurance
      "GOOD"
      0.5 3.0/5 "Satisfactory"
      I have been holding my two wheeler insurance since 2009. I got through the showroom. Premium is good and it is normal when compared to the others. I had no claiming from my insurance. Policy coverage and plan benefit i have no idea. No theft coverage. Payment i do through the cash.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 17, 2018
    • Bajaj Allianz Two Wheeler Insurance
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I've been using the Bike Insurance from Bajaj Aliianz for the past 3 years . I pay a premium of 1200 per year. I do not have any claim experience with the policy. I got this policy from the showroom and I never faced any issues with their services. Overall it has been a smooth experience with them.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 16, 2018
    • Royal Sundaram Two Wheeler Insurance
      "Good Service"
      0.5 4.0/5 "Great!"
      My bike is insured with the Royal Sundaram Insurance company. I am paying a premium of 1200. I got this policy from the bike showroom. I make payment at the Royal Sundaram branches and the staff are friendly. I do not have any claim experience with the policy.
      Was this review helpful? 0
      , chennai
      Reviewed on Jun 16, 2018
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