When it comes to bike insurance, one of the key terms you will come across is IDV, which stands for Insured Declared Value. IDV plays a crucial role in determining the premium and claim settlements in bike insurance policies.
IDV represents the maximum amount that an insurance company will pay in case of a total loss or theft of your bike. It is the current market value of your bike after deducting depreciation based on its age and condition.
The IDV of your bike is calculated by taking into account factors such as the manufacturer’s listed selling price, the age of the bike, and the depreciation rate. As your bike gets older, the IDV decreases due to depreciation.
It is important to understand the significance of IDV in bike insurance. The IDV value directly affects the premium you pay for your insurance policy. Higher the IDV, higher will be the premium. On the other hand, a lower IDV will result in a lower premium.
At the time of making a claim, the IDV is used to calculate the settlement amount. If your bike is stolen or damaged beyond repair, the insurance company will reimburse you for the IDV value of your bike.
It is essential to ensure that the IDV of your bike is accurately assessed at the time of purchasing insurance. Underestimating the IDV can lead to lower claim settlements, while overestimating can result in higher premiums.
Therefore, it is advisable to opt for a bike insurance policy that offers a fair and accurate IDV assessment, ensuring that you are adequately covered in case of any unfortunate events. Can Buy from policybazaar
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