What is IDV ?

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What is IDV?

The Insured Declared Value (IDV) is decided on the basis of manufacturer’s listed selling price of the brand and model of the vehicle. It is basically the depreciated value of the vehicle agreed upon by the insurer and the policyholder The IDV of the vehicle reduces with age.
However, if any electrical and /or electronic items are installed separately, which are not included in the manufacturer’s selling price, their IDV is decided independently at an extra cost. Moreover, in case of a claim, the onus is on the insured to justify the higher IDV. IDV is to be fixed at the commencement of each policy period for the insured vehicle. IDV of vehicles that are more than 5 years of age and of models that manufacturers have discontinued is to be determined on the basis of an understanding between the insurer and the insured.

Recently, Third-Party (TP) premium rates were increased by the regulator. Owners of cars will have to shell out a third party premium based on cubic capacity of the vehicle as mentioned below:

CUBIC CAPACITY of the vehicle

Premium

Not exceeding 1000 cc

Rs.784/-

Exceeding 1000cc but not exceeding 1500 cc

Rs.925/-

Exceeding  1500 cc

Rs.2,853/-




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