Bike IDV Calculator - A Complete Guide

The IDV calculator for bikes is an online tool that helps determine the current market value of your two-wheeler, accounting for depreciation. This value is crucial because it represents the maximum amount an insurance company will pay to the bike owner in the event of theft or total loss. It will also reflect the bike's worth at the time of insurance purchase or renewal and influence the premium amount.

The calculator utilises inputs such as the bike's make, model, purchase year, and depreciation rate to quickly and accurately estimate this value. By calculating the IDV value of a bike, bike owners can make informed decisions about their insurance coverage.

With the help of a bike IDV calculator, you can easily calculate your bike's Insured Declared Value (IDV).

Correct Premium Calculation

One of the benefits of calculating the IDV of a bike using a tool is the accurate calculation of the premium. Since the IDV directly affects the insurance premium, the calculator allows you to find the right balance between coverage and premium cost, helping you avoid overpaying or under-insuring.

Claim Amount Determination

Using the bike IDV calculator, vehicle owners can also determine the Insured Declared Value (IDV) of their bike. The IDV sets the maximum compensation you can receive in case your bike is stolen or totally damaged, so using the calculator ensures that you get a fair claim based on the bike's actual value.

Simplifies Policy Renewal

Another benefit of the IDV value calculator for bikes is that it simplifies the process of renewing bike insurance policies. With regular use, it helps update the IDV at policy renewal to reflect the bike’s current condition, keeping your insurance relevant and cost-effective.

Accurate Market Value Estimate

The bike IDV calculator helps in calculating the market value of the vehicle. By determining your bike's current market value, factoring in depreciation, you ensure that the insured value reflects the bike's real worth.

The bike IDV calculator uses a standard depreciation rate given by the India Motor Tariff. Here is how you can calculate the IDV of a two-wheeler using the online tool.

Step 1: Open the Bike IDV Calculator

To use the bike IDV calculator, go to the Bike IDV calculator page on the TATA AIG website.

Step 2: Input the Detail

Enter the necessary details in the tool, such as the bike's ex-showroom price and manufacturing year.

Step 3: Determining Depreciation

Once the details are entered, the calculator will use the bike age and cost of accessories to calculate the applicable depreciation rate from the standard chart.

Step 4: Calculating IDV

The calculator then shows the actual IDV of the bike by subtracting the Depreciation.

Also Read: Understand Depreciation Value & IDV of Your Two Wheeler

The standard formula for calculating bike IDV (Insured Declared Value) is:

IDV = (Manufacturer’s listed price − Depreciation) + (Cost of accessories −Depreciation on accessories)

For bikes without additional accessories, it is:

IDV = Manufacturer’s listed price−Depreciation

Registration and insurance costs are excluded; accessories fitted after purchase are included, considering their depreciated value.

Several factors are crucial when calculating the IDV of a bike in India. Let us understand these factors and how they influence your bike insurance premium.

Age of the Bike

As a bike ages, it accumulates more depreciation, which lowers its overall market value and, consequently, the IDV. A lower IDV means a reduced claim payout if the bike is damaged or stolen. Since insurance providers assume less risk with a lower-value bike, this directly results in a more affordable premium for the owner.

Make and Model

Premium and newer bikes typically have a higher market value, increasing their IDV. As a result, the insurance premium tends to be higher because insurers may have to pay a larger amount for total losses. On the other hand, older models have lower IDVs and attract more affordable premiums; however, a lower insured value limits their potential for claims.

Depreciation Rate

Depreciation is the drop in value due to wear and tear, and it increases each year, significantly impacting the IDV calculation. The insurance provider applies fixed rates based on the bike’s age, reducing the sum insured over time. Higher depreciation leads to lower coverage, which may lower the premium but can leave bike owners underinsured and exposed to financial setbacks

Accessories and Modifications

Another factor that affects the bike's IDV is the addition of accessories and modifications. When non-standard accessories or modifications are declared and included in the policy, their value gets added to the IDV after factoring in depreciation. Insurance providers charge a higher premium to cover the increased risk.

Geographical Location

The area where the bike is registered can impact its IDV, especially if it is located in an area prone to theft or accidents. Insurance providers adjust market values and policy premiums in cities with higher risks. In safer areas, premiums may be lower due to reduced risks, while the IDV can remain higher if local market values dictate it.

Market Value and Demand

Insurance companies consider current market demand, resale trends, and popularity when calculating IDV. Bikes in high demand may have higher IDV, resulting in a higher premium. On the other hand, unpopular or discontinued models may have a lower market value, which reduces both the IDV and the premium.

IDV value calculator for bikes over 5 years involves considering their depreciated value. For older bikes, we often determine IDV based on:

Market Valuation: Assessing the bike’s current resale value.

Mutual Agreement: Estimation of IDV based on mutual understanding between the insurer and insured.

Formula: IDV = (Ex-showroom price - Depreciation) + Costs (registration, taxes).

For example, if your bike's ex-showroom price was ₹80,000 and its depreciation is 50%, the IDV would be ₹40,000 plus applicable registration and taxes.

TATA AIG provides precise IDV evaluations for older bikes, ensuring suitable premium prices and two-wheeler insurance claims.

The IDV is usually selected by the bike owner at the time of buying a two-wheeler insurance plan. Choosing the right IDV is crucial to ensure you receive adequate coverage for your bike. Here is a breakdown of how to choose the right IDV for your bike insurance.

Assess Your Bike Market Value

The first step is to assess the current market value of your bike through online listings or local dealers. This market value serves as the basis for determining the IDV. Choosing an IDV that is close to market value helps ensure fair compensation in the event of a total loss or theft.

Consider Bike Age and Depreciation

Bike value depreciates with age, so adjust the IDV accordingly during policy renewal. Older bikes have lower IDV and premiums. Ensure the IDV reflects this depreciation to avoid paying for coverage beyond the bike’s worth.

Include Accessories If Applicable

When purchasing or renewing a bike insurance policy, declare any additional accessories, as they add value to your bike. Including these increases your IDV and premium, but ensures full coverage for all parts. An accurate declaration prevents disputes over claims later.

Consult with Insurance Provider

It is best to consult with the insurance provider to determine the correct IDV. Compare IDV values proposed by insurance providers and verify them against your market research. Don’t hesitate to negotiate IDV with insurers at renewal to get the best coverage and premium.

Customise IDV for Bike Insurance

Lastly, based on your vehicle usage and market value, customise your IDV. For instance, if your bike is in good condition, even if it's old, you can opt for a higher IDV for better insurance coverage.

When using the IDV value calculator for bikes, consider the following tips to make an informed decision. These tips are:

Provide Accurate Details

It is essential to provide accurate information about the bike, such as make and model, variant, bike age and more. This is necessary for the correct IDV assessment.

Compare with Market Price

Cross-verify the calculated IDV with local resale values to ensure realistic insurance coverage and avoid unexpected claims costs.

Keep Records in Check

You must also keep your bike records up to date, including maintenance bills, repair bills, and other relevant documents. These documents are useful if you want to modify or upgrade your bike IDV.

Reassess IDV Regularly

It is crucial to reassess IDV at every policy renewal to update the bike value according to market trends and conditions, thereby avoiding overpayment or underinsurance.

Understanding the bike IDV calculator is crucial before buying bike insurance. This tool helps determine the correct IDV value of the bike, which in turn helps provide balanced bike insurance coverage and premiums. The higher the IDV, the higher the bike insurance premium; on the other hand, the lower the IDV, the lower the costs, but it limits claim payouts.

At TATA AIG, we offer a reliable bike IDV calculator that helps you accurately calculate the Insured Declared Value (IDV) of your bike before purchasing an insurance plan. Our tool considers important factors, such as your bike’s age, make, model, and depreciation, to provide a transparent IDV estimate.

Not only this, but with our customised bike insurance policies, you will also receive extensive coverage against theft, accidental damage, third-party liabilities, and add-on benefits such as personal accident cover and roadside assistance. You can also use our bike insurance calculator to estimate the premium in advance.

Our plan also comes with a host of benefits, including a no-claim bonus, cashless repairs at network garages, 24/7 claim assistance service, and more. With this in mind, secure your bike with our affordable bike insurance plan today.