In bike insurance, IDV stands for Insured Declared Value. It is the maximum payout amount provided by the insurer during claim settlement and plays a crucial role when purchasing two-wheeler insurance. IDV represents the total value of the insured vehicle, which the insurer uses to compensate the policyholder in case of irreparable damage or total loss.
The IDV is calculated based on the market value of the bike and is valid only under comprehensive bike insurance. It represents the current maximum sum insured by the insurer in the event of theft or total loss of the bike. Essentially, the IDV is the maximum value or the sum assured offered by the insurer to the policyholder, or the maximum amount that a policyholder can receive as compensation.
