IDV In Your Car Insurance Policy
Car insurance policy of yours. So what does IBD stand for well it means in short declared value still doesn’t make sense well that’s how everything in the financial and legal world is supposed. to be most people should not understand what is very simply put it’s the value.
Which the car insurance company a science to your car so in case your car is stolen or there is a complete damage. which happens to the thought that is the amount that will be given to you a spot of the claim. so let’s say you have a brand-new car the IBV will be equal to the price of the car. the six-month-old car the chances are that it will depreciate by 5% a year.
old card the chances are that it will depreciate by 10%. and as the car gets older the value of the car for which is in short. The reduces so that in a nutshell is what the IDB is. and it is one of the biggest factors which influence the premium which you have to pay. so when the premium is calculated the ideally plays the biggest part in determining. How big a small the premium is? now something which you should be careful about or why taking a car insurance policy. there is some unscrupulous elements irradiance would probably drop your IDB and give you a lower premium.
So on the face of it, you look at it you asked for quotes from two people one person is giving you five hundred rupees. less as compared to the other person you probably need to delve deeper and check has he dropped the idea of my car’s in the case gets stolen I might actually get fifty thousand rupees. which are actually a very bad field for saving a 500 altarpiece should be very careful. more your facts what you know your facts and what you’re getting into. As we the most car insurance cost, car insurance, premium, OD, IDV, insurance bazar, bank.
Well actually taking a car insurance policy the IDB is a very important factor that’s it for all as today.
Insured Declared Value (IDV) Definition:
Insured Declared Value is the maximum Sum Assured fixed by the insurer which is provided on theft or total loss of the vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle suffers a total loss, IDV is the compensation that the insurer will provide to the policyholder.
IDV is calculated as manufacturer’s listed selling price minus depreciation. The registration and insurance cost are excluded from IDV. The IDV of the accessories which are not factory fitted is calculated separately at extra cost if insurance is required for them. The depreciation schedule is as follows:
|Age of Vehicle||% Depreciation for adjusting IDV|
|Not exceeding 6 months||5%|
|Exceeding 6 months but not exceeding 1 year||15%|
|Exceeding 1 year but not exceeding 2 years||20%|
|Exceeding 2 years but not exceeding 3 years||30%|
|Exceeding 3 years but not exceeding 4 years||40%|
|Exceeding 4 years but not exceeding 5 years||50%|
The IDV of vehicles aged over 5 years is calculated by 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.
IDV= (Manufacturer’s listed selling price- depreciation) + (Accessories that are not included in listed selling price-depreciation) and excludes registration and insurance costs.
Why is IDV important?
As explained, IDV is the amount that you will get in case your vehicle is stolen or suffers a total loss. It is highly recommended to get IDV which is near the cost of market value of a car. Insurers provide with the range of 5% to 10% to decrease IDV which could be chosen by the customer. Less IDV would attract less premium.
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