IDV Calculator for Bike
Amrit Pal Singh 02-11-2023 Bike Insurance Bike Insurance, Two Wheeler InsuranceIDV Calculator for Bike
To calculate the Insured Declared Value (IDV) for your bike, you will need the following details:
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Age of the bike: The age of the bike is one of the factors in determining its IDV. The older the bike, the lower its IDV, as its value depreciates over time.
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Manufacturer and model: The make and model of your bike also influence the IDV calculation. Different brands and models have different depreciation rates.
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Ex-showroom price: The ex-showroom price is the cost of the bike when it was new. This is used as the base value for calculating IDV.
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Age-related depreciation: The IDV of a bike decreases with each passing year due to depreciation. The depreciation rates for bikes are usually as follows:
- Up to 6 months: 5% depreciation on ex-showroom price
- 6 months to 1 year: 15% depreciation on ex-showroom price
- 1-2 years: 20% depreciation on ex-showroom price
- 2-3 years: 30% depreciation on ex-showroom price
- 3-4 years: 40% depreciation on ex-showroom price
- 4-5 years: 50% depreciation on ex-showroom price
To calculate the IDV, you can use the following formula:
IDV = Ex-showroom price - (Depreciation x Ex-showroom price)
For example, let's assume the ex-showroom price of your bike was $10,000 and it is 2 years old. The depreciation rate for a 2-year-old bike is 20%.
IDV = 10,000 - (20% x 10,000) = 10,000 - 2,000 = $8,000
Therefore, the IDV of your bike would be $8,000.
It's important to note that the IDV is not the final market value of your bike. It is the maximum amount that the insurance company will provide as compensation in case of theft or total loss of the bike.