The simple formula to calculate IDV is:
- IDV = Manufacturer’s registered price – depreciation.
- Insured Declared Value = (Company’s listed price – Depreciation value) + (Cost of vehicle accessories – Depreciation value of the accessories)
What is estimate of a value in insurance?
All insurers ask you to estimate the value of your car when applying for cover or renewing. This figure is recorded on your policy as the “Insured’s Estimate of Value” and it is used to calculate your premium.
How IDV value is calculated?
IDV is calculated as the manufacturer’s listed selling price minus depreciation. The registration and insurance costs are excluded from IDV. The IDV of the accessories which are not factory fitted is calculated separately at extra cost if insurance is required for them.
Is higher IDV better?
Insurance companies calculate the premium of a four-wheeler insurance policy based on the IDV. A lower IDV of a car implies that its premium will also be lower and a higher IDV of a car will result in a higher premium.
How do I find out my insurance value? – Related Questions
Can I increase the IDV value?
Some insurance companies ask for a higher premium at the time of your policy renewal to increase the IDV of your vehicle. So, if your car is four-years-old and its value has depreciated from Rs. 8 lakhs to Rs. 5 lakhs, you can pay a higher premium and increase the IDV back to Rs.
How do you calculate car depreciation?
To estimate how much value your car has lost, simply subtract the car’s current fair market value from its purchase price, minus any sales tax or fees. If you’re considering buying a car, look up the fair market value of older versions of the make and model to get a sense of the car’s value down the road.
What is IDV and NCB?
IDV = Insured Declared Value. It is the value of the car taken into consideration for premium calculation. As NCB is a discount that comes into action after a no-claim policy period, it affects the premium calculation during policy renewal.
What is IDV value of bike?
Insured Declared Value, or IDV for short, is the maximum amount for which your bike can be insured. This is the sum insured payable in case of the total loss of the two wheeler or an unrecoverable theft. In other words, Insured Declared Value is the current market price of your bike.
What is a zero DEP insurance?
Zero depreciation means – If you have nil depreciation cover then you can claim the total cost of replacement of car parts in case of accidental damage. The depreciation value of the damaged parts won’t be deducted from the claim amount. Thus, it helps you save a huge amount.
Can I claim insurance for car scratches?
Yes, you can claim insurance for car scratches and dents in India. However, it is advisable not to do so as it may become an expensive deal for your future motor insurance premiums.
Is zero dep not available after 5 years?
Best-Suited for –The Zero Depreciation cover is only applicable to new cars up to five years old. If your car is more than five years old, you should consult your insurer for a suitable course of action.
Is bumper to bumper same as zero depreciation?
Zero depreciation cover and bumper to bumper cover are the same thing. They are just two names for a car insurance add-on which insures a policyholder against the depreciation cost of his/her insured’s car. Zero Depreciation or Bumper to Bumper plan covers the full cost of replacement.
Is TYRE covered under zero depreciation insurance?
A zero depreciation cover does not protect the car from damage to its engine through oil leakage or water ingression. Standard wear and tear to cars and car parts such as clutch plates, tyres, bearings, etc. are not covered under nil depreciation insurance.
Can I get a zero depreciation car insurance after 7 years?
Yes, your car is eligible for zero depreciation add-on cover. IFFCO Tokio offers its zero depreciation cover for all cars not older than 10 years.
Is bumper to bumper insurance available after 5 years?
Since the depreciation of a car is directly related to its age and usage, the older a car, the higher the premium that you shall have to shell out for its bumper to bumper cover. It is important to note here that you cannot purchase bumper to bumper insurance for cars that are older than 5 years.
How many times can I claim bumper to bumper insurance?
Below is what is not covered under the bumper to bumper insurance: Generally, insurers allow only two claims during the policy period and this may vary between insurance companies. The insurer will decline the claim in case the vehicle has been reported that it has been used for illegal activities or unethical use.
Is engine cover in bumper to bumper?
In the bumper-to-bumper car vehicle insurance policy, the insurance covers the cost for all the parts, except for the engine, tyres, batteries, tubes and glasses. This car vehicle insurance policy is usually provided as an add-on with the standard policy.
Is it good to take bumper to bumper insurance?
Advantages of Bumper to Bumper Car Insurance
Having nil depreciation or zero depreciation cover in your car insurance policy would mean full compensation for any car loss/damage at the time of claim settlement. The amount is certainly more than the amount reimbursed under a comprehensive car policy.
How many times we can use car insurance?
Generally, there are no restrictions on the number of claims you can make under the car insurance policy in a year. However, one should remember that the car insurance claim affects the NCB (No Claim Bonus). Repeated claims in a year may also increase the premium when you renew the policy.
What is not covered in bumper to bumper insurance?
Bumper to bumper insurance does not cover batteries and tyres. They are not covered under the zero depreciation add on. Other things of a car which are not covered in a bumper to bumper insurance include the bi-fuel kit, gas kits and the mechanical breakdown of the car.