dilemma on IDV
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Insured's Declared Value (IDV)
Tried finding my answer on TeamBHP but seen mixed and contradictory opnions from each other.
Here, *claim = total loss/ theft / repair>IDV
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Guy A :
- Check your vehicle's IDV from the IDV Calculator of the General Insurance Council. Keep that IDV for your policy.
- Because as the time of claim, the company will pay you per the current market rate or depreciated value per GIC, not the IDV value written in the policy.
- An increase in IDV is just an illusion to grab more premium from customers.
- "They might accept premium for a higher IDV, but when it is time to settle, they will go by their own valuation and not by your IDV. It is a waste of time and money IMO. I am talking of total loss here."
My stand on A :
- Some private companies like Acko, Digit, and government agencies like NIA give a lucrative IDV from market value.
- Policy bazaar puts this message in hazard color and small fonts on the page of IDV settings "Your IDV should be 10% less than Previous Year Policy or as per depreciation norms of Indian Motor Tariff. Insurers consider the same during payment of a Total loss claim."
- A new question from the upper statement raises that suppose I somehow grabbed a high IDV policy from Acko, and it's been a claimless year. For next year I wouldn't mind decreasing 10% from the previous inflated IDV, but insurance companies still have the gun of GIC calculator.
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Guy B :
- If the Insurer is offering you a higher IDV at a higher premium, then it is an understanding between you and the Insurer and will be treated as the market value throughout the policy period. If you are comfortable paying an extra premium, then that's your call. Once you're eligible to claim the policy, the company must pay you the FULL IDV mentioned in the policy.
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I am still on RTI cover for my car, so I never had to worry about IDV. But it is quite a dilemma for old 2-wheelers as there is a rare chance of repair and high cases of theft.
It would be helpful If anyone has experience/ wording to prove either A or B to the right.
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https://www.desidime.com/discussions/dilemma-on-idv?page=1#post_8602111
https://www.desidime.com/discussions/dilemma-on-idv?page=1#post_8602609
I think, someone who would have actually gone through such a case, only he can tell the accurate way things work in such a scenario.
Ideally, since the insurance company lets us select an IDV from a given range, they should honor any IDV value selected from among their given range. But we all know, ideally is not how things work always. So may be, its better to select a middle value from the range, neither too low, nor too high.
We never had to make a claim in 12 years of car ownership in my household, thankfully! So not really sure about this doubt of yours.
Ideally, since the insurance company lets us select an IDV from a given range, they should honor any IDV value selected from among their given range. But we all know, ideally is not how things work always. So may be, its better to select a middle value from the range, neither too low, nor too high.
We never had to make a claim in 12 years of car ownership in my household, thankfully! So not really sure about this doubt of yours.
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If B is the right buy, then Acko is the best(by value) option for old 2- wheelers as they provide at least 20% more IDV with the same competitive rate. For theft/ complete loss, they can't do much for rejection in the presence of an FIR.