IDV stands for Insured Declared Value. It is the value your insurer places on your vehicle for the policy year, and it is the maximum amount payable if the vehicle is stolen or damaged beyond economical repair.
How IDV is arrived at
- It starts from the manufacturer's listed selling price of the model and variant.
- Depreciation is applied according to the vehicle's age.
- Registration charges and insurance cost are excluded; fitted accessories can be added separately.
Why the number matters
A low IDV reduces the premium but also reduces what you receive after a total loss. A very high IDV raises the premium and will still be settled only against the assessed value of the vehicle. Choosing a figure close to a realistic resale value is usually the balanced approach.
IDV applies to own-damage cover. It has no bearing on third-party liability, which is governed separately.