Insurance is like a spare tyre. You may not require it, but not having one is not an option.

Declaration Value of Your Two Wheeler

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Two Wheeler Insurance
  • Get liability-only and comprehensive cover
  • Cashless garages available
  • Hassle-free online buy/renewal offered by insurers

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.

1. How Does IDV Impact Bike Insurance Policy 2. Choosing Different IDV Than The Market Value 3. IDV Calculation For Two Wheeler Insurance 4. 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.

Read More Related Guides

Declaration Value of Your Two Wheeler Reviews

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  • Bajaj Allianz Two Wheeler Insurance
    "Need to reduce the premium"
    0.5 4.0/5 "Great!"
    My two wheeler insurance is with Bajaj Allianz because mine is Bajaj bike so it will be easier for claim and also lot of showrooms included. I got the insurance paper. The claim process was average, the amount was not fully refunded. Also the process was lengthy. I have paid the premium of Rs.2000 for one year. It is a first party insurance. I felt the premium is quite high.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2019
  • Bajaj Allianz Two Wheeler Insurance
    "Average"
    0.5 3.0/5 "Satisfactory"
    I took my two wheeler insurance from Bajaj Allianz last year. It was suggested by my friend because he is working. I have paid approx 1000 rupees to purchase the policy. I never had a customer service experience and no claim. The benefits are good and its a third party insurance.
    Was this review helpful? 0
    , pune
    Reviewed on Jan 18, 2019
  • ICICI Lombard Two Wheeler Insurance
    "Not recommendable policy"
    0.5 3.0/5 "Satisfactory"
    My two wheeler insurance was taken from ICICI Lombard. I have applied the claim from with ICICI Lombard but they have not given proper response. They have not processed the claim also. Since because of the lowest premium, i have opted this policy. The service is not upto the mark.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 18, 2019
  • Bharti Axa Two Wheeler Insurance
    "Excellent Service"
    0.5 4.0/5 "Great!"
    I had taken this insurance policy a long back and the premium has been paying annually. The premium amount has not been too high and the payment method has also been convenient. I had not made any claims so far and it has been a good policy for others as well.
    Was this review helpful? 0
    , navi mumbai
    Reviewed on Jan 18, 2019
  • New India Two Wheeler Insurance
    "Good Insurance company"
    0.5 4.0/5 "Great!"
    They are good in all service, without approach them they are providing good service. New India premium is economical, I paid the premium around Rs 7000 for three years. They gave me the third party cover, cash less service. They got tie up with many experience the agents are good.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 18, 2019
  • Bajaj Allianz Two Wheeler Insurance
    "Premium should be economical for the renewal"
    0.5 4.0/5 "Great!"
    Whenever there is a issue, I can reimburse with Bajaj Allianz its good than other company. One time I claimed, they gave me cash less service the premium is lesser than others then I changed it. The renewal option is good but they show more premium when I go for renewal.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • ICICI Lombard Two Wheeler Insurance
    "Very Good Service"
    0.5 4.0/5 "Great!"
    I had taken this insurance policy almost four years back and i am paying the premium annually. The premium amount has not been high and the payment method has been simple. There has not been any claims made so far and the services which they had offered so far was good.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 17, 2019
  • HDFC Ergo Two Wheeler Insurance
    "Good for two wheeler"
    0.5 4.0/5 "Great!"
    My policy belongs to HDFC Ergo, its a premium policy for one year the insured value is fine for me Rs. 97,000, I have the KTM Duke bike its good, I took first party insurance with HDFC Ergo, I really not interacted with them for any policy queries.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 17, 2019
  • Bharti Axa Two Wheeler Insurance
    "IDV percentage should be increased"
    0.5 4.0/5 "Great!"
    The insured value is low in Bharti axa, I Purchased Royal Enfield bike for Rs. 1.75 but they gave me only Rs. 1.20 lakh . My policy has the tenure of two years, I am not sure about the tie up services. I have taken the first party insurance. I purchased in the month of october 2017.
    Was this review helpful? 2
    , new delhi
    Reviewed on Jan 14, 2019
  • National Insurance Two Wheeler Insurance
    "Better"
    0.5 4.0/5 "Great!"
    I had my two wheeler insurance from National Insurance and it was a better experience. This insurance was issued by the showroom as a default. There is no claim. I felt the premium is bit higher so moved to HDFC Ergo. The customer service is better.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 14, 2019
  • HDFC Ergo Two Wheeler Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    My two wheeler insurance was taken from HDFC Ergo because it has more benefits and the premium is lower compared to others. It is a first party insurance. The customer service is very good. There was no claim and IDV value is good. I got the insurance paper.
    Was this review helpful? 1
    , bangalore
    Reviewed on Jan 14, 2019
  • HDFC Ergo Two Wheeler Insurance
    "Very Good Service"
    0.5 4.0/5 "Great!"
    I had taken this insurance for my bike a long time back and it had been a good policy. I had been paying the premium on an annual basis and the premium amount was not too high as well. The payment method has been simple and there has not been any hassle. There has not been any claims made so far and there has not been any hassle faced with the services of them.
    Was this review helpful? 0
    , coimbatore
    Reviewed on Jan 13, 2019
  • ICICI Lombard Two Wheeler Insurance
    "Good features"
    0.5 4.0/5 "Great!"
    I have my two wheeler insurance with ICICI Lombard. The services are good and there no hassles to get the policy. The premium is also nominal. The policy coverage and benefits are satisfactory. I also received the policy papers on time. Good in all.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 12, 2019
  • United India Two Wheeler Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    This policy was recently renewed for my bike, my brother went to the showroom and then he renewed the policy, the premium is economical as per the market. They are issuing the policy with the good coverage of bike. Its a trusted insurance company and I got the paper on time.
    Was this review helpful? 4
    , kolkata
    Reviewed on Jan 11, 2019
  • Reliance General Two Wheeler Insurance
    "Should get tie up with more service centers"
    0.5 3.5/5 "Pretty good"
    Even for my Bajaj discover bike I had Reliance general insurance it has the tenure of one year, they gave me good insured value around Rs. 19,000, it covers for the loss, damage. They need to get tie up with chennai to get the hassle free service.
    Was this review helpful? 2
    , chennai
    Reviewed on Jan 10, 2019
  • Reliance General Two Wheeler Insurance
    "Easy Renewal"
    0.5 3.5/5 "Pretty good"
    Based on my experience Reliance insurance company is good, the premium is standard as per the current market. I have Honda it covers for loss, damage cover. There is no claim experience, I used to visit to the branch for the renewal they provide good service.
    Was this review helpful? 1
    , chennai
    Reviewed on Jan 10, 2019
  • Iffco Tokio Two Wheeler Insurance
    "Quick Service "
    0.5 4.0/5 "Great!"
    I have bike policy with IFFCO TOKIYO, it was my friend bike later on it got transfered to my name with Iffco Tokiyo two wheeler policy, the insured value is good it has coverage for the loss and damage. On time they processed the policy on my name. I am happy about it.
    Was this review helpful? 2
    , mumbai
    Reviewed on Jan 10, 2019
  • New India Two Wheeler Insurance
    "Good Experience"
    0.5 5.0/5 "Blown Away!"
    In New India, I have insured my Hero CT delux bike, once a while it got damaged they done the service on time, the premium is low however the insured value is good. It has third party insurance, the service is good and I could renew the policy on time.
    Was this review helpful? 0
    , ambala
    Reviewed on Jan 10, 2019
  • National Insurance Two Wheeler Insurance
    "Its Good"
    0.5 5.0/5 "Blown Away!"
    In National Insurance the premium amount is low around Rs. 2000 for one year, the insurance company allocated Rs. 35,000 for my bike. My Honda dio vehicle is around 6 years, the policy activation done on time. My bike got damaged within 10 days.
    Was this review helpful? 3
    , ambala
    Reviewed on Jan 10, 2019
  • New India Two Wheeler Insurance
    "Average Two Wheeler insurance"
    0.5 3.0/5 "Satisfactory"
    My two wheeler insurance was taken from New India for my new bike. The showroom people has done a insurance when i purchased my two wheeler. I paid the premium amount of Rs. 1600. The documentation process was simple. They have given the IDV value of Rs. 55000 which I'm happy about.
    Was this review helpful? 3
    , mangalore
    Reviewed on Jan 09, 2019
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