Insured Declared Value or IDV is the maximum sum insured fixed by an insurance company to compensate the policyholder in case of theft or loss of his/her two wheeler. In simple terms, IDV is the current market value of a policyholder’s motorcycle.
Moreover, the IDV substantially affects the insurance premium and plays a crucial role when an individual raises a claim. That said, a few insurance companies provide policyholders with the option to increase their IDV while purchasing bike insurance or during the policy renewal.
Increasing bike insurance IDV
Usually, the insurance provider sets the IDV of a online bike insurance policy after assessing the vehicle’s age, condition and depreciation. However, individuals can either accept this valuation or increase/decrease the IDV as per their requirements.
However, most insurance companies tend to ask for a higher premium for renewing the IDV. Specifically, here are the implications of increasing bike insurance IDV:
1. Increased payouts
Increasing a motorcycle insurance plan’s IDV results in increased payouts in case of theft or loss of the vehicle. This way, individuals can receive a higher amount and offset the monetary losses without having to burn a hole in their pockets.
2. Higher premiums
While an increased IDV can provide a higher payout, it also invites a greater premium amount. This is because a higher IDV creates a substantial risk to the insurer. Thus, to cover a bike, one has to shell out more premiums.
Moreover, when it comes to increasing the insured declared value, policyholders must remember a few things before purchasing an online bike insurance. They are –
- An increase in IDV is typically an agreement between the insurer and policyholder. Further, if there are any disputes regarding the same, the entire onus would fall upon the policyholder.
- Individuals can use IDV calculator for two wheelers available across various financial platforms. This online tool will help them understand the market value of their bikes and assist them in making an informed decision.
Benefits of an increased bike insurance IDV
There are certain scenarios where an increased IDV might come to the rescue. Find them below:
● Theft
This is one of the most common instances when an increased IDV of a bike insurance might become helpful. In case of theft, buying a new vehicle out of one’s pocket might be an expensive affair. Since a high IDV pays out a higher claim amount, one can purchase a new bike of his/her choice without worrying financially.
● Total loss
As the term suggests, bikes that are beyond repair after suffering an unfortunate accident are called total or complete loss. In such a situation, there is no way for the individual to repair the vehicle and bring it back to its previous shine. So, one can raise a claim with their insurer and receive a higher IDV to back his/her finances.
● Constructive loss
Somewhat similar to total loss, a constructive loss is when a bike has suffered enough damages, but it can be restored to its original condition. At the same time, the repair cost might exceed 75% of the bike’s market price. In such a situation, instead of paying for the repairing costs on their own, individuals can benefit from the higher payout that the insurance company provides.
Moreover, individuals who want comprehensive financial protection for their bikes can consider visiting leading insurance aggregators online to purchase an insurance policy for two-wheelers. One must not consider an insurance policy as anything other than a crucial assest similar to any must have bike accessories, because having a two-wheeler plan not only helps you in dire situations but it also covers most of the other expenses. However, it is quite critical to assess the requirements and financial standing before buying online bike insurance policy.
[…] Supply hyperlink […]
[…] Supply hyperlink […]