Understanding the impact of IDV (Insured Declared Value) on renewing bike insurance.


14 Jun 2023

Key Factors Influencing IDV and Its Effect on Bike Insurance Premiums

IDV (Insured Declared Value) is the amount fixed by the insurer that represents the market value of the bike. It is the amount that the insurance provider will pay you for bike losses caused by damages or other covered situations in your insurance. However, you must know that higher IDV bike insurance will lead to higher premiums and vice versa.

Additionally, the IDV evolves with time. So, what it was when a policy was purchased will be different at the time when a two-wheeler insurance policy renewal comes. As depreciation comes in, it'll probably decrease, bringing the premiums down.

How does IDV impact bike insurance renewal?

As we know, IDV bike insurance is the current market value of the bike, and it is also inversely proportional to the bike's age. Several factors affect the IDV of the bike -

  • Make and model of the bike

  • Fuel type

  • Depreciation

  • Your bike's age

Simply put, an IDV increases with the age of the bike, which shows depreciation.

Is it important to disclose your IDV at the time of policy renewal?

Knowing the proper Insured Declared Value (IDV) at the time of bike insurance renewal is essential since it affects your bike insurance cost. In addition, in cases of complete loss or theft, the amount of claim settlement you are qualified to obtain depends on the IDV.

Never attempt to lower the IDV to lower the insurance premium's cost. It might cost you dearly because the IDV, rather than the bike's actual market worth, is considered when processing claims. Consequently, having a low IDV might cost you money when you file a total loss or theft claim. To ensure that you receive the appropriate compensation in the event your bike is stolen or completely damaged, it is advised to maintain the IDV as near to market value as possible.


At the time of bike insurance renewal, the Insured Declared Value (IDV) is a key factor. Always disclose the correct IDV bike insurance; else, you will be required to pay extra later. Several insurance platforms offer attractive discounts and may advise you to choose the finest solution.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.