Bike IDV Explained: How Two-Wheeler IDV Is Calculated

Key takeaways

Bike IDV = ex-showroom price − age-based depreciation + declared accessories − depreciation.
The depreciation schedule is the same as for cars: 5% up to 6 months rising to 50% at 4–5 years.
Two-wheeler theft claims are settled on IDV, so a low IDV hurts most here.
Raising IDV on a bike usually costs very little extra premium.

For a two-wheeler, the own-damage premium is often only a few hundred rupees. That makes it tempting to accept whatever IDV the quote shows. But two-wheelers are stolen far more often than cars, and when a bike disappears, IDV is the number that decides your payout.

The formula

Bike IDV = (Ex-showroom price − depreciation) + (Accessories − depreciation)

Age of vehicle	Depreciation for IDV	IDV as % of ex-showroom
Not exceeding 6 months	5%	95%
Exceeding 6 months but not exceeding 1 year	15%	85%
Exceeding 1 year but not exceeding 2 years	20%	80%
Exceeding 2 years but not exceeding 3 years	30%	70%
Exceeding 3 years but not exceeding 4 years	40%	60%
Exceeding 4 years but not exceeding 5 years	50%	50%
Above 5 years	Mutually agreed	Based on market value

Examples

Vehicle	Ex-showroom	Age	Depreciation	IDV
110cc scooter	₹82,000	1 yr 3 mo	20%	₹65,600
125cc commuter bike	₹95,000	2 yr 6 mo	30%	₹66,500
350cc motorcycle	₹2,10,000	8 mo	15%	₹1,78,500
Electric scooter	₹1,30,000	3 yr 2 mo	40%	₹78,000

What it costs to keep a fair IDV

Using India Motor Tariff reference rates (about 1.7%–2.0% of IDV for two-wheelers) and a typical 50% insurer discount, each ₹10,000 of IDV on a commuter bike adds only around ₹80–₹90 to the basic own-damage premium before NCB and GST. Cutting ₹10,000 of IDV to save that amount is rarely worth it if the bike is stolen.

Accessories on two-wheelers

Crash guards, saddle bags, top boxes, aftermarket exhausts (where legal) and extra lights are only covered if declared with their value. Factory-fitted features of your variant are already in the ex-showroom price. Keep the invoices.

Multi-year policies

New two-wheelers must carry five years of third-party cover. If you also bought multi-year own-damage cover, the IDV for each year is set in the policy schedule and steps down with age. Read how IDV works on long-term two-wheeler policies.

Get your bike’s IDV and a 5-year forecast.

Bike IDV Calculator

Bike IDV by year at three price points

For a two-wheeler insured on its purchase date, each renewal lands at the top edge of a slab, so the IDV usually follows this path:

Policy year starting	IDV %	₹80,000 scooter	₹1,20,000 bike	₹2,00,000 bike
New	95%	₹76,000	₹1,14,000	₹1,90,000
1st renewal (12 months)	85%	₹68,000	₹1,02,000	₹1,70,000
2nd renewal (24 months)	80%	₹64,000	₹96,000	₹1,60,000
3rd renewal (36 months)	70%	₹56,000	₹84,000	₹1,40,000
4th renewal (48 months)	60%	₹48,000	₹72,000	₹1,20,000
5th renewal (60 months)	50%	₹40,000	₹60,000	₹1,00,000

Where to find the IDV on your policy

Open the policy schedule (the first page or two of the PDF). Look for “Insured’s Declared Value”, “IDV” or “Total IDV” in the vehicle details or premium section. If you declared accessories, they appear as separate IDV lines that add up to the total. On a multi-year own-damage policy, the schedule should list the IDV for each year.

Mistakes that cost bike owners money

Accepting the lowest IDV slider position to save a few rupees on a vehicle that is easy to steal.
Not declaring accessories such as crash guards or top boxes, then finding they are not covered.
Letting the policy lapse for a few days — any theft during the gap is not covered, and an inspection may be needed to restart cover.
Keeping the RC and spare key together in the bike — it makes theft easier and can complicate a theft claim.

FAQs

Is IDV different for scooters and motorcycles?

No. Both use the same schedule. Only the ex-showroom price differs.

What if my bike is more than five years old?

IDV is agreed with the insurer based on market value. Check local resale prices for your model and year before accepting a figure.

Does IDV affect my bike’s third-party premium?

No. Third-party premium depends only on engine capacity (or kW for electric two-wheelers).

Sources

Two-wheeler package and standalone own-damage policy wordings — IDV definition and age-wise depreciation schedule.
India Motor Tariff reference own-damage rates for two-wheelers.