What is IDV (Insured Declared Value) in motor insurance?
Written for policyholders in India · Last reviewed 2026-10-10
IDV is the sum insured for your vehicle — the most a motor policy will pay for the vehicle itself if it is stolen or written off — and it is shown on your schedule. One insurer's standard private car wording fixes it at the start of each policy period from the manufacturer's listed price, adjusted for the vehicle's age. In that wording, a total-loss payout is the IDV less the value of the wreck.
One insurer's standard private car wording says the Insured's Declared Value of the vehicle is deemed to be the sum insured, fixed at the commencement of each policy period. Its Customer Information Sheet says the IDV is based on the manufacturer's listed selling price of the brand and model at the start of insurance or renewal, adjusted for depreciation.[1, 2]
How the IDV is set
| Age of vehicle | Depreciation for fixing IDV |
|---|---|
| Not exceeding 6 months | 5% |
| 6 months to 1 year | 15% |
| 1 to 2 years | 20% |
| 2 to 3 years | 30% |
| 3 to 4 years | 40% |
| 4 to 5 years | 50% |
For vehicles more than five years old, and for obsolete models, the same insurer fixes the IDV by agreement between you and the insurer.[2]
What the IDV decides in a claim
- Total loss: In that wording, the insurer's liability for a total or constructive total loss is the IDV, including accessories, less the value of the wreck.[1]
- When repair becomes a total loss: The same wording treats a car as a constructive total loss if retrieval and repair would cost more than 75% of the IDV.[1]
- Partial damage: The IDV does not set repair claims: those are paid at the actual and reasonable cost of repair, subject to depreciation on the parts.[1]
- No further depreciation during the year: The CIS treats the IDV as the market value throughout the policy period, without further depreciation for total-loss claims.[2]
Checking your IDV
Compare it at renewal
Compare the IDV on the renewal notice with last year's. A lower IDV means a lower ceiling on any total-loss payout.[1]
Check the accessories
The total-loss payout in that wording is the IDV including accessories, so check that fitted accessories appear on your schedule.[1]
Know what the IDV leaves out
The price you paid on the road can be higher than the IDV. One insurer sells a return to invoice add-on that pays the on-road price on a total loss or theft.[2]
If you disagree with a total-loss figure
Sources
The official documents this page relies on. Rules change: where it matters to your claim, check the current version at the source.
1. The New India Assurance Company Limited
Standard Form for Private Car Package Policy (UIN IRDAN190RP0042V01100001)Accessed 2026-10-09 · Cited at: New India Assurance, Private Car Package Policy wording (UIN IRDAN190RP0042V01100001), 'Sum Insured – Insured's Declared Value (IDV)', page 1; New India Assurance, Private Car Package Policy wording (UIN IRDAN190RP0042V01100001), 'The schedule of depreciation for fixing IDV of the vehicle' (age bands from not exceeding 6 months to not exceeding 5 years), page 1; New India Assurance, Private Car Package Policy wording (UIN IRDAN190RP0042V01100001), Condition 3(a); New India Assurance, Private Car Package Policy wording (UIN IRDAN190RP0042V01100001), page 2 (IDV section); New India Assurance, Private Car Package Policy wording (UIN IRDAN190RP0042V01100001), Condition 3(b)
2. The New India Assurance Company Limited
Private Car Package Policy – Customer Information Sheet (UIN IRDAN190RP0042V01100001)Accessed 2026-10-09 · Cited at: New India Assurance, Private Car Package Policy Customer Information Sheet, Policy Coverage, Section I (page 1); New India Assurance, Private Car Package Policy Customer Information Sheet, item 7 'Available Add on', 4. Return to Invoice
ClaimAssure is an independent private platform. It is not an insurer, IRDAI, Bima Bharosa or the Insurance Ombudsman, it never files anything on your behalf, and it cannot promise any outcome. What it does is read your documents and show you what they say.
Read next
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