Insured Declared Value & IDV Effect on Claims

Find about what is Insured Declared Value & IDV Effect on Claims, how Insured Declared Value will be arrive while issuing a policy and IDV effects on claims..

Insured Declared Value

IDV full form Insured Declared Value. IDV also termed as SUM INSURED of the vehicle and it will be fixed at the commencement of each policy period for insured vehicle.

Insured Declared Value Fixing

IDV of the vehicle may fixed on the basis of manufacturer’s listed selling price of the brand and model, at the time of commencement of insurance/renewal and adjusted for depreciation.

Depreciation Chart for arriving IDV

Age of the Vehicle% of Depreceiation for fixing IDV
Not exceeding 6 months5%
Exceeding 6 months but not exceeding 1 year15%
Exceeding 1 year but not exceeding 2 years20%
Exceeding 2 years but not exceeding 3 years30%
Exceeding 3 years but not exceeding 4 years40%
Exceeding 4 years but not exceeding 5 years50%
  • IDV for extra fittings categorized in to Electrical and Non Electrical fittings. IDV of extra fittings may fixed while commencing the policy and should be shown separately as Electrical and non Electrical fittings IDV.
  • IDV should fix at the time of commencement of policy. Once IDV fixed for a vehicle, it should not changed during the policy tenure.
  • If TRAILER of vehicle also included in policy, trailer IDV may shown separately.
  • If Vehicle ages more than 5 years, IDV may fixed based on market value or assessed by surveyor.

IDV Effects on Claims

  • While settlement of total loss claims insures liability may be maximum IDV/Sum Insured fixed while commencement policy.
  • Partial loss claims settled in the policy period won’t affect IDV in case of total loss claim. In another words if a small claim settled for a vehicle and another claim arises for the same vehicle which is total loss. The claim value may be IDV/Sum Insured while commencing the policy.

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