Difference between IDV & WDV

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This query is : Resolved

Quick Summary

Insured Declared Value (IDV) is the maximum payout for theft or total loss, based on the vehicle's replacement value. Written Down Value (WDV) is the vehicle's value after depreciation. Vehicle insurance premiums are calculated on the IDV. While you can reduce the IDV to lower premiums, this increases your personal risk in case of a claim.

thotasrinivas

thotasrinivas (Querist)

14 February 2023 Please explain IDV & WDV. vehicle (Bus) insurance calculation on IDV value /WDV Value?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 February 2023 IDV refers to Insured Declared Value and is the maximum sum assured fixed by the insurer that is offered in case of theft or total loss of a vehicle.
WDV is written down value after deducting depreciation.
Insurance to be calculated on IDV value.

thotasrinivas

thotasrinivas (Querist)

14 February 2023 how to Fix IDV value of vehicle? calculation please. can we reduce IDV value for vehicle?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 February 2023 Yes, you can reduce but this will take higher risk.

thotasrinivas

thotasrinivas (Querist)

16 February 2023 IDV is greater than Vehicle value? if high why?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 February 2023 It's taken on replacement value.
You will get the full value of new vehicle in case of insurance claim.