What is an IDV Calculator? Meaning, Formula, & How to Use It.

Whether you have a Car, Bike, or commercial vehicle, you must have heard about the term IDV. The IDV full form is Insurance Declared Value, This value helps you find the insurance premiums and the amount you will receive in case of loss or theft. In simple words, it is the current market value of your vehicle.

 

Here, in this blog, you will learn about the IDV meaning, how you can calculate it via a formula, how much it depreciates every year, and how you can calculate it efficiently with IDV calculators.

What is IDV in Insurance?

IDV Full Form is Insured Declared Value. It is the maximum amount the insurance company will pay you if your vehicle is stolen or damaged. You can simply understand the IDV meaning as the current market value of the vehicle. Remember that IDV is not the same as the amount you have paid at the time of purchase. So, don’t be confused because IDV is calculated based on the age and condition of the vehicle.

How is IDV Calculated?

You can calculate the IDV of any vehicle (Car, Bike, and Commercial Vehicle) through these formulas.

 

IDV Calculation Formula without Additional Accessories

Let’s take an example of a Car,

IDV= (Manufacturer’s listed selling price – depreciation value)

 

For a Car with Additional Accessories

IDV=(Manufacture’s listed selling price – depreciation value) + (Cost of Accessories-depreciation of Accessories)

 

Point to Remember

• Depreciation: You must know that the depreciation rate varies according to the age of the Car, it usually increases with age. That’s why we have provided you the IDV Depreciation Chart for better calculation.
• Exclusion: You must also know that registration and insurance costs are not included in the IDV Calculation.
• Standard Accessories:  Standard Accessories fitted in your vehicle are also not included in the IDV calculation.

How to calculate IDV – Example

Let’s assume there is a car whose

• Ex-showroom Price = ₹8,00,000

• Age of the Car = 2 Years

• Depreciation (as per table for 2 years) = 20%

Now, let’s put value in the formula as we do in solving numerical and mathematical equations.

IDV=(Manufacture’s listed selling price – depreciation) + (Cost of Accessories-depreciation of Accessories)

IDV = ₹8,00,000 – (20% of 8,00,000) = ₹6,40,000

IDV Depreciation Chart

How to Calculate IDV through IDV Calculator?

IDV calculators are online tools and services that help you check the IDV without going deep into the mathematical calculation. You just need to fill in the value and instantly get the results.

Calculate IDV through IDV Calculator GIC

• Visit gicouncil website
• Enter the required details such as vehicle type, state, year, month, make, model, and variant.
• Click on Show price
• Get the IDV value.

Calculate Vehicle IDV Through an API

Insurers, lenders, and vehicle resellers need accurate vehicle valuation to price policies, approve loans, and set resale values. The IDV calculator API gives the current insured value of a car, bike, or commercial vehicle just using the vehicle name and model number. This reduces repetitive manual processes and valuation errors with batch processing and improved accuracy. So, businesses can generate an insurance quote without manual valuation.

 

• Input: Vehicle name, Model number.
• Output: Vehicle name, IDV value, New No Claim Bonus (NCB), Policy status (active or expired).

Why is choosing the Right IDV important?

You should choose the right IDV (Insured Declared Value) when buying and renewing your vehicle insurance. It directly affects insurance premiums and claim amounts.

 

A higher IDV causes you to pay a higher premium amount, but it helps in getting a better claim payout. Where a lower IDV is cheaper, but you must know that the claim amount will also be less. That’s why it is good to choose the right IDV.

Tips to Choose the Right IDV

• Use an Online IDV Calculator: An IDV calculator helps you instantly check the accurate IDV of your vehicle.
• Avoid choosing the lowest IDV: Don’t choose the lowest IDV just to pay less premium because it will not help you in getting a good claim.
• Compare IDV across insurers: Always check the IDV offered by different insurance companies before policy renewal.

Conclusion

Calculating IDV before buying insurance and renewing is crucial to get a good claim in case of vehicle theft, total loss, or damage. IDV, or Insured Declared Value, is simply the current market value of your vehicle, worked out by subtracting depreciation from the manufacturer’s listed selling price. You can easily calculate the IDV value of a vehicle through the formula or IDV calculator that is mentioned above. So, use the formula and calculator and accurately calculate your vehicle value and choose the right plan.

FAQs

Ques: Is there any IDV Calculator for commercial vehicles?

Ans: Yes, Surepass offers an IDV calculator for commercial vehicles to get an accurate IDV instantly.

 

Ques: How is the IDV Calculated?

Ans: You can calculate the IDV through the online calculator or tool or the IDV Calculation formula (IDV=(Manufacturer’s listed selling price – depreciation) + (Accessories not included in listed selling price – depreciation).

 

Ques: How much is IDV reduced every year?

Ans: Usually, the IDV reduces every year based on depreciation, usually by 5% to up to 50% according to the vehicle’s age.

 

Ques: What is the IDV Value of the bike?

Ans: The IDV value of the bike is the current market value if you minus the depreciation and added accessories from the actual price.