Скачать или смотреть Meaning Of IDV Insured Declared Value

*IDV (Insured Declared Value)* is the *maximum sum insured* amount that an insurance company will pay in case of total loss or theft of a vehicle. It is the current market value of the vehicle, determined after considering depreciation based on the vehicle's age.

*Formula for IDV:*
\[
\text{IDV} = \text{Ex-showroom price} - \text{Depreciation} + \text{Cost of accessories (if any)}
\]

*Depreciation for IDV Calculation:*
| Vehicle Age | Depreciation (%) |
|------------|----------------|
| Up to 6 months | 5% |
| 6 months - 1 year | 15% |
| 1 - 2 years | 20% |
| 2 - 3 years | 30% |
| 3 - 4 years | 40% |
| 4 - 5 years | 50% |

A higher IDV means a higher premium but also better coverage, whereas a lower IDV reduces the premium but provides less compensation in case of a claim. 🚗💰