Named Driver Cover

How Is Your Car's Insured Declared Value (IDV) Calculated?

To find the insured declared value (IDV) of your motor vehicle, apply the following formula:

IDV = Ex-showroom price of your vehicle – Depreciation value) + (Accessory Prices - Depreciation on these accessories)

You can calculate a brand-new vehicle’s after-purchase additions using this formula. The IDV computation is as follows if there are no additional accessories:

IDV = Ex-showroom price of the vehicle - Depreciation value of the vehicle

Basis of Arriving at Insured Declared Value (IDV) of the Insured Vehicle:

List of products specified in the list above are governed by the Indian Motor Tariff.

The Insured’s Declared Value (IDV) of the vehicle will be deemed to be the ‘Sum Insured’ and it will be fixed at the commencement of each policy period for each insured vehicle.

The IDV of the vehicle (and accessories if any fitted to the vehicle) is to be fixed on the basis of the manufacturer’s listed selling price of the brand and model of the insured vehicle at the commencement of the Policy. The IDV shall change according to the depreciation grid below for each block of one year within the policy period.The Schedule of Depreciation For Fixing Idv of the Vehicle

How Are Total Loss (TL) and CTL Determined?

You can calculate Total Loss (TL) and Constructive Total Loss (CTL) for motor vehicles by comparing the estimated cost of repairs to the vehicle's Insured Declared Value (IDV). If the total cost of recovering and/or fixing a vehicle exceeds 75% of the IDV, it is classified as a CTL. Over time, the IDV, the maximum amount insured, decreases. 

Total loss is usually reported when the vehicle is stolen and never found, damaged by a flood, or permanently destroyed. In certain situations, it is deemed a complete loss if the repair expenses surpass 100% of the IDV or the current market value.

The IDV arrived as per the above method may be further adjusted basis various factors such as location, make and model etc., with agreement of the Insured and as captured in the Policy Schedule.

The age-wise depreciation schedule shown above is applicable only for Total Loss/Constructive Total Loss (TL/CTL)/Cash Loss claims.

IDV of vehicles beyond 5 years of age and for obsolete models (i.e. models that manufacturers have discontinued) is to be determined on the basis of mutual agreement between the Insurer and the Insured.

IDV shall be treated as the Market Value throughout the Policy Period without any further depreciation for the purpose of Total Loss (TL)/Constructive Total Loss (CTL)/Cash loss claims.