IDV, or Insured Declared Value, is the maximum sum assured fixed by an insurer, which is provided to the policyholder in case of theft or total loss of vehicle. For simpler understanding, IDV is the current market value of the vehicle.

So, in case a vehicle suffers a total loss, IDV will be compensation amount that the insurer will provide to the policyholder.

IDV can be calculated as selling price (as listed by the auto manufacturer) – depreciation cost.

Do note that insurance cost and registration cost are excluded from IDV. Additionally, the IDV of the accessories in your vehicle which are not factory fitted are calculated separately if insurance is required for them.

If your vehicle is over five years, then its IDV is calculated by mutual agreement between the insurer and the insured. However, if your vehicle is older than that, then your IDV would be determined by assessing the vehicle’s condition. This assessment is usually done by surveyors, car dealers, etc.

The IDV of vehicles aged over 5 years is calculated by a mutual agreement between insurer and the insured. Instead of depreciation, IDV of old cars is arrived at by assessment of vehicle’s condition done by surveyors, car dealers etc.

Thus, IDV can be calculated as:

Insured Declared Value (IDV) = (Manufacturer’s listed price - depreciation) + (Cost of accessories not included in the listed price - depreciation of these parts)