Estimate your car or bike's Insured Declared Value based on ex-showroom price and age-based depreciation.
≤6 months: 5% · 6mo–1yr: 15% · 1–2yr: 20% · 2–3yr: 30% · 3–4yr: 40% · 4–5yr: 50%. IDV = (ex-showroom price + accessories) − depreciation.
Illustrative estimate only — actual premiums and payouts depend on the insurer's underwriting, medical checks, and policy terms. Always get a quote directly from a licensed insurer.
Insured Declared Value (IDV) is the maximum amount your insurer will pay if your car is stolen or damaged beyond repair — calculated as the manufacturer's current selling price minus depreciation, plus the value of any accessories (also depreciated). It directly sets your premium too: a higher IDV means a higher own-damage premium, since the insurer's maximum payout risk is higher, so there's a genuine trade-off between paying more now for full protection and paying less now while accepting a lower payout ceiling later.
IRDAI fixes the depreciation schedule that every insurer must follow, and it isn't linear — it accelerates sharply in the middle years: no depreciation for vehicles under 6 months old, 5% depreciation from 6 months to 1 year, 10% from 1-2 years, 15% from 2-3 years, then a notable jump to 25% from 3-4 years and 35% from 4-5 years. Past 5 years, depreciation is set by mutual agreement between insurer and insured rather than a fixed table, which is exactly why older vehicles sometimes see disputes over IDV at renewal time. The practical lesson: don't accept a lowball IDV at renewal just because it lowers this year's premium — if your car is lost or totaled, you're locked into whatever IDV was agreed at the start of that policy year, so it's worth checking the number matches the correct age-based depreciation slab rather than assuming the renewal auto-quote got it right.
Insured Declared Value is the maximum amount your insurer will pay out if your car is stolen or damaged beyond economical repair (a "total loss"). It's calculated as the manufacturer's current selling price minus a fixed depreciation percentage based on the vehicle's age, plus the depreciated value of any accessories.
Under 6 months: 0% depreciation. 6 months-1 year: 5%. 1-2 years: 10%. 2-3 years: 15%. 3-4 years: 25%. 4-5 years: 35%. Beyond 5 years, depreciation is set by mutual agreement between insurer and policyholder rather than a fixed IRDAI table.
Because IDV represents the insurer's maximum payout exposure if your car is stolen or totaled — a higher IDV means the insurer is on the hook for a larger potential payout, so the own-damage portion of your premium is priced higher to reflect that increased risk.
Not necessarily — the IDV you accept becomes your payout ceiling for the entire policy year if your car is stolen or totaled. Choosing an artificially low IDV to save a modest amount on premium can leave you significantly underpaid in a total-loss claim, so it's worth checking that any offered IDV genuinely matches the correct age-based depreciation slab rather than accepting whatever number lowers the renewal quote most.