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The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘SUM INSURED’ for the purpose of this Policy which is fixed at the commencement of each Policy period for the insured vehicle.

The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation (as per schedule below).

Within 6 months 5%
Between 6 months to 1 year 15%
Between 1 year to 2 years 20%
Between 2 years to 3 years 30%
Between 3 years to 4 years 40%
Between 4 years to 5 years 50%
Exceeding 10 years 50%

The schedule of age-wise depreciation as shown below is applicable for the purpose of Total Loss/Constructive Total Loss (TL/CTL) claims only.

IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the Company and the Insured. IDV shall be treated as the ‘Market Value’ throughout the Policy period without any further depreciation for the purpose of Total Loss (TL) / Constructive Total Loass (CTL) claims. The insured vehicle shall be treated as a CTL if the aggregate cost of retrieval and / or repair of the vehicle, subject to terms and conditions of the Policy, exceeds 75% of the IDV of the vehicle.

How to Calculate IDV ?

IDV is calculated on the basis of the selling price that the manufacturer decides and the depreciation on its vehicle’s parts is deducted from it. The formula to derive the actual Insured declared value is mentioned below:

Insured Declared Value = (Company’s listed price – the depreciation value) + (Cost of vehicle accessories - the depreciation value of these parts)

The above-mentioned formula is to calculate the IDV for a new car that is equipped with extra accessories that were added after the purchase of the car. In case you do not have any such accessories in the vehicle, the IDV calculation is simple.  You can easily calculate Insured Declared value of your using the online IDV calculator. And the formula is enclosed below:

IDV = Manufacturer’s registered price – the value of depreciation

The depreciation applicable will be as per the table gave above.

For instance - If your car’s value or IDV is fixed at INR 5 lakh at the time of policy purchase, the insurer will recompense a maximum amount in the event of total loss or damage will be INR 5 lakh. It is imperative to you will get compensation only in case of constructive total loss or in case of theft of the car within the policy term.