IDV
Also called Insured's Declared Value
Insured's Declared Value: the sum insured on your vehicle, the most a motor policy pays for theft or total loss.
IDV, the Insured’s Declared Value, is the sum insured on your vehicle under the own-damage part of a motor policy. It’s the most the insurer pays if the vehicle is stolen or a total loss, and it’s fixed at the start of each policy year. Learn more in motor insurance explained.
Questions people ask
What is the full form of IDV?
IDV stands for Insured's Declared Value. IRDAI's 2024 Master Circular treats it as the sum insured on your vehicle, fixed at the start of each policy period.
How is IDV calculated?
Under IRDAI's 2024 rules, each insurer's product committee approves its own basis for IDV and the depreciation scale, publishes it on the insurer's website, and shows it with an illustration in the policy's Customer Information Sheet.
Should I choose a lower IDV to save premium?
A lower IDV lowers the own-damage premium, but it also lowers what you get if the vehicle is stolen or written off. It's a trade-off between today's premium and a smaller payout later.
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