two-wheeler insurance planfor your needs, you will come across the term IDV. Let’s look at what IDV is and how it can impact your two-wheeler bike insurance premium.
What Is IDV?
IDV stands for Insured Declared Value. It refers to the maximum amount your insurer is willing to pay if your two-wheeler is stolen or damaged beyond repair. Your two-wheeler’s IDV depends on two factors – the selling price of the bike and its age. The older your bike, the more the value depreciates over time. Here’s a look at how your insurer calculates your IDV:
|Age of the Vehicle||Depreciation Percentage|
|< 6 months||5%|
|6 months to 1 year||15%|
|1 to 2 years||20%|
|2 to 3 years||30%|
|3 to 4 years||40%|
|4 to 5 years||50%|
Let’s assume the cost of a new two-wheeler is INR 50,000. For a new bike, the IDV will be 5% less, which is INR 47,500. If your bike is three years old, the IDV will be 30% less, which is INR 35,000.
How Does It Affect My Two-Wheeler Insurance Premium?
Your bike insurance premium depends on your IDV. The higher your IDV, the higher your premium. Very often, people pick the two-wheeler
bike insurance plan that offers the most affordable premium. Unfortunately, this means they will likely get a lower settlement in case their two-wheeler is stolen or ruined beyond repair. When you’re purchasing a policy or completing your bike insurance renewal online, you must check both the premium and the IDV.
Other Important Bike Insurance Terms
Apart from IDV, here’s a look at some other crucial terms that could impact your two-wheeler insurance premium:
Your third-party cover refers to the amount your insurer will pay for damages to another person or their property. If you opt for only a third-party liability policy, damages to your vehicle will not get covered. We always believe that a comprehensive policy, offering cover against third-party and own damages makes the most sense.
No Claim Bonus
For every year that you do not make a claim against your bike insurance policy, your insurer rewards you with a No Claim Bonus (NCB). Typically, they decrease your premium amount for the following year without decreasing your coverage or IDV. For every subsequent year that you do not make a claim, your NCB increases.
Personal Accident Cover
Your comprehensive two-wheeler insurance plan provides coverage for damages to your vehicle and third-party individuals and property. When you pick an Edelweiss Motor Insurance plan, we also offer personal accident cover. If you get injured in an accident and need hospitalisation, the cover will help pay for medical expenses. In case of a fatal accident, the cover amount is offered to your nominee to help them deal with any financial obligations.
Once you understand all the insurance terms, picking a policy that suits your needs is easy!