IDV calculator for Bike

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Bike IDV Calculator

Buying a bike insurance plan is equally essential when you buy a new or a second-hand two-wheeler. In India, according to the Motor Vehicles Act, every two-wheeler owner should have at least a third-party insurance policy in place in order to be able to move around with ease. However, how do you choose the right policy for yourself?

In India, there are several insurers who claim to offer the best insurance for bike. But before choosing anyone that’s available online, it’s prudent to go through the policy inclusions and exclusions well to be on the safe side. At Tata AIG, we have some of the most affordable two-wheeler insurance plans in India. Also, our policy buying, claim, and bike insurance renewal online processes are swift and absolutely hassle-free.

Now, what is an IDV calculator, and how does it help in buying a bike insurance plan? If you have never heard of this term before, you should know that the IDV calculator or the Insured Declared Value calculator plays a very important role in determining the premium price of your chosen insurance for bike. And therefore, an IDV calculator for bike online will help you to ascertain the premium amounts for your chosen two-wheeler insurance.

Without much ado, let’s get into the details of a vehicle IDV value calculator and every single nitty-gritty of the same.

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September 15, 2021

What is IDV in Insurance?

The IDV full-form is Insured Declared Value. This is one very common motor insurance terminology that most people have heard of. However, only a few know the actual importance and meaning of it. Basically, the IDV is the maximum value, or the sum assured offered by an insurer to a policyholder, or the maximum amount that a policyholder can receive as compensation in case of a total loss or damage to the insured bike.

IDV is also considered to be the current market price of the insured vehicle. In other words, the Insured Declared Value of a vehicle is the total amount that you will be able to claim as compensation or reimbursement against the irrevocable damages caused to your insured two-wheeler.

So, when you opt for a comprehensive two-wheeler insurance policy, you will have to select an appropriate IDV in order to ensure that you get maximum compensation benefit in case of a mishap in the future. Now, the premium payable will also be directly proportional to the IDV you choose. Hence, the more the selected IDV, the more will be your premium amount. Usually, the premium charged is 2-3% of the total selected IDV value of an insured vehicle.

How to Calculate IDV of Bike?

As mentioned above, the IDV value calculator for bike will help you understand the total premium payable against your chosen insurance plan. However, how do you calculate IDV of bike?

IDV value of a bike will be calculated by taking into account the current selling price of the two-wheeler in the market. And from the market price of the bike, the depreciation on the vehicle’s parts is deducted to find out the

IDV. The formula to calculate the IDV of a bike is as below:

IDV (Insured Declared Value) = (Vehicle’s listed market price – depreciation cost) + (cost of the bike accessories – depreciation value of the parts)

Here, even the extra accessories on a bike will be put into consideration while calculating the IDV. For instance, if you have installed accessories like body covers, tyre inflators, gears, and so on, the prices of these will be included in the IDV of your bike.

But if you don’t have any extra accessories in your two-wheeler, you can calculate the IDV of your bike yourself with the help of an online IDV calculator. The formula for the same is –

IDV (Insured Declared Value) = Manufacturer’s registered cost of the bike – depreciation value

Now, how will this work? So, suppose the market price of your bike is ₹5 lakh when you purchase the bike insurance policy; your insurer will compensate for a maximum value that you’d choose as an IDV if your bike faces total damage or an irreparable loss. It is vital to know that you can only claim for the IDV of your bike faces theft or severe damage within the policy tenure.

Things to Keep in Mind When You Calculate IDV of Bike

Now that you are aware of what is IDV in insurance, here are a few essential factors that you need to keep in mind when calculating the same –

  • The vehicle value will be derived after deducting its depreciation value from the actual market value of the same. So, the maximum reimbursement that you would get in case of total loss or damage to the bike is the IDV that you would choose in the beginning.
  • If you can pick the right IDV value for your bike, you will be able to keep the premium amounts lower.
  • However, just to lower the premium amount of your two-wheeler insurance, do not pick a lower IDV. This may lead to a disputed claim in the future.
  • Do your research well, and then check with the manufacturer of the vehicle before agreeing to an IDV that’s been set by your insurer.
  • Always choose the right IDV because it will only lead you towards rightful claims in the future.
  • After you are done choosing the IDV, make sure to assess the premium price well. You need to be sure that the premium has been correctly evaluated by the insurer on the basis of your chosen IDV.
  • Choosing the higher IDV means that your premium cost will go up. In that case, you also need to be sure that you are getting the right kind of policy coverage as well.

You can choose your vehicle’s IDV online. However, it varies from one insurer to another. So, while renewing your existing bike insurance, you may take the help of an IDV calculator online to choose the right premium amount.

Factors Influencing the Vehicle IDV

Here are a few factors that determine the IDV of a vehicle –

  • Age of the Bike – IDV is basically the market value of a vehicle. Therefore, the age of your bike is extremely crucial in determining the IDV for the same. The older your bike is, the lesser will be the IDV and vice versa.

  • Registration Location – Your bike’s registration details play a big role in the evaluation of the IDV. Your registration city or location will be present on the registration certificate. This location of your bike registration has quite an impact on the IDV that you would choose. For example, the IDV of your bike bought and registered in a metro city could be less than that of in a tier-II city.

  • Make & Model of the Bike – The manufacturer’s details and the make & model of your bike will also have an impact on its IDV. For example, the IDV of TVS Apache will be lesser than that of a Bullet 350 due to the difference in their make and model.

  • Depreciation of the Bike – The depreciation of the bike will start from the very moment you will start riding it. And the depreciation percentage will keep increasing every year. So, this also will have a huge effect on the IDV. Below you will find out how the bike’s value will depreciate over the years and how much impact it will have on the IDV.

IDV Calculator – Depreciation Rates of Vehicles

As discussed above, an IDV value calculator for bike is one of the most crucial insurance tools. It helps in determining the market value of a vehicle, and it also helps the policyholder ascertain the right premium amount payable against their chosen two-wheeler insurance.

This calculator further helps the insurers regulate the right amount to be paid during claims, and in case of irreparable damages, the IDV calculator can be of great help to the insurers. The Insurance Regulatory and Development Authority of India (IRDAI) has fixed a rate table for vehicles that shows their depreciation costs, and it helps in calculating the IDV of the vehicle.

Age of the Bike/Car Percentage of Depreciation for IDV Calculation
6 months or not exceeding 6 months 5%
More than 6 months but less than a year 15%
More than 1 year but less than 2 years 20%
More than 2 years but less than 3 years 30%
More than 3 years but less than 4 years 40%
More than 4 years but less than 5 years 50%

How Can IDV Affect the Bike Insurance Premium?

The IDV of your bike and your chosen two wheeler insurance premium price will go hand in hand. Simply put, the higher your chosen IDV is, the more will be your insurance premium payable. Also, as your bike ages, its IDV will depreciate, and naturally, the premium price will also go down.

When you decide to sell your bike, the more its IDV will be, the better price you will get for it. Reselling price will, however, also depend upon certain other factors like past insurance claims, bike usage, and so on.

So, while choosing a bike insurance policy, always make sure to get into the details of the IDV offered and pick the right IDV only. This will ensure that your bike will be in good hands! And even if you need to pay more IDV to get better policy inclusions, you should go ahead with it. as mentioned earlier, choosing a lower IDV for a lower premium payable is not advisable.

An insurer who is offering you low premium prices may be tempting, but in the long run, this could mean that their IDV is low. So, in case of total damage or loss of your bike, you may get really less amount as compensation.

At Tata AIG, we have the right IDV for your beloved bike! Also, the premium prices that we offer are extremely reasonable. This means, that if ever your bike, God forbid, experiences irreversible damage, we will offer you higher compensations against your higher IDV.

Significance of IDV on Bike Insurance Plans

Here is how choosing the right IDV for your bike is worth it –

  • The IDV, as discussed above, is the market price of your bike. Therefore, it will directly affect the premium payable. Also, in case of the total damage to the bike, the reimbursement of your IDV can be a boon!

  • The IDV of your bike will also determine the risk level. So, the more the bike’s IDV is, the higher will be the risk of it getting stolen. Hence, this would finally demand a higher premium price.

  • During insurance claims, reimbursements will be paid out on the basis of the value of your bike. Also, the repairing costs will be based on the same. Hence, this becomes one of the essential factors in your bike insurance so that during such tough times, you can receive the right compensation amount for the loss of your bike and the claim that you make.

  • If your bike is ever stolen or gets damaged beyond repair, the compensation amount that you will receive from the insurer will be exactly equal to your chosen IDV. Hence, while picking the IDV for your bike, make sure that you are choosing it as per the bike’s value.

How to Calculate a Bike’s IDV with an Online IDV Calculator?

The IDV calculator online will take into consideration several aspects. You need to fill in the details accurately in order to find out the right IDV value for bike. Here are the factors that are needed to calculate the IDV of a vehicle –

  • Type of the Vehicle

The type of the vehicle plays the most crucial role in the IDV estimation. This is because the IDV of two different vehicles will never be the same as their individual prices. So, on the IDV calculator, you will first have to choose the vehicle type.

  • Location/State

Next, provide the name of the Indian state your vehicle has been registered in.

  • Year

Then, fill in the exact year of purchase of the vehicle. This is another very important criterion behind deciding the IDV of your bike. Every year, your bike’s value will depreciate. So, the year of purchase will be used to ascertain the Insured Declared Value of the bike.

  • Make & Model

Once you are done filling in the correct information related to the above steps, you will have to choose the make and model of your bike. You need to provide the name of the original manufacturer in the calculator along with the correct model of your vehicle. IDVs are never the same for two different vehicles because the make and model of the vehicles differ from one another. Hence, you need to put the right make and model in the calculator.

  • Variant

Finally, you will have to choose the correct variant of the vehicle. Every vehicle comes with different engine features. And a bike with a more powerful engine will be priced higher and will naturally have a higher IDV. Hence, your mentioned variant will help to determine the IDV, and you will get an accurate estimation for your bike.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

1. Why is IDV calculator significant in determining bike insurance premium costs?

1. Why is IDV calculator significant in determining bike insurance premium costs?


The IDV of a vehicle is the current market price of the same. Hence, while buying a two-wheeler insurance policy, it’s important to choose the right IDV amount in order to get the right compensation in case of a total loss or damage to the vehicle in the future.

2. What is the formula to calculate the IDV of a vehicle?


If you have some added accessories in your bike, then the formula to determine your bike’s IDV would be –

IDV (Insured Declared Value) = (Vehicle’s listed market price – depreciation cost) + (cost of the bike accessories – depreciation value of the parts)

However, if there are no extra accessories in your bike, the IDV calculation formula would be – IDV (Insured Declared Value) = Manufacturer’s registered cost of the bike – depreciation value

3. Is It necessary to choose a higher IDV?


Honestly, it will depend upon the price of your vehicle. If you wish to insure a very expensive bike, then it’s prudent to choose a higher IDV value for bike. Also, a high IDV is appropriate for vehicles that are new and in good condition. Basically, the higher the IDV, the higher will be the premium payable.

4. What if I choose a lower IDV?


Most of the time people choose a lower IDV to pay lower premiums annually. However, you must understand that even though you may have to pay lower premiums, you will not get the needed compensation during claims from the insurer if you choose a lower IDV. So, we would advice you to go for an IDV value that’s the right for your vehicle.

5. What will be the IDV for vehicles than 5 years old?


According to IRDAI, a vehicle that is more than 5 years old will have a depreciation value of 50% usually, and that will determine its IDV.