IDV Depreciation Rates Explained: The Age-Wise Schedule and How Slabs Work

The depreciation schedule is the backbone of every IDV calculation. It is printed in the policy wordings of Indian insurers and applies to cars and two-wheelers alike. Understanding how its slabs work helps you check quotes and avoid surprises at renewal.

The schedule

Read each row carefully: “not exceeding 6 months” includes a vehicle that is exactly six months old; “exceeding 6 months but not exceeding 1 year” starts the day after. The age is measured on the date the policy (or each annual block of a multi-year policy) starts.

Where the big jumps are

Depreciation does not rise smoothly. It moves in steps:

What this means for a typical vehicle

Most vehicles get their first policy on the day of purchase. Each renewal then falls exactly one, two, three and four years later, which lands on the upper edge of a slab (“not exceeding”). So the usual IDV path is:

If your policy dates and registration date are out of step — for example after a lapse, a change of insurer mid-way, or a used-vehicle purchase — the vehicle can sit in a different slab. That is why our IDV calculator asks for both dates.

Accessories and kits follow the same rate

Declared accessories and external CNG/LPG kits are depreciated using the same schedule. Some insurers measure an accessory’s age from its own fitment date; if you added an expensive accessory late, ask your insurer which date they use.

After five years

The schedule ends at five years. For older vehicles, and for vehicles whose model is no longer made, the IDV is determined by agreement between you and the insurer, usually guided by the market value of similar vehicles. Insurers may use valuation tools or a surveyor’s assessment. Our calculators show an indicative figure (5% extra depreciation per year) and label it as an estimate. Read more in IDV for vehicles older than five years.

Don’t confuse it with parts depreciation

A different schedule applies to parts replaced in an accident claim — 50% on plastic and rubber parts, 30% on fibreglass, nil on glass and an age-based rate on metal. That schedule reduces repair payouts, not your IDV. See depreciation on parts in a claim.

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