IDV Calculator (Car Insurance)

Don't pick the lowest IDV just to save on premium. Insurers typically offer an IDV range of ±10% around the grid-computed value. A lower IDV means a lower OD premium today, but a smaller claim payout if your car is stolen or written off — you absorb the gap.

A higher IDV gives you full replacement-value protection at a modestly higher premium. For most owners, picking the higher end of the offered range is the more rational choice unless the difference in premium is materially painful. The savings on a lower IDV are typically a few hundred to a few thousand rupees per year, while the claim shortfall can be tens of thousands.

IRDAI prescribes a fixed depreciation schedule that every general insurer must apply:

• 0 – 6 months: 5% depreciation (IDV = 95% of ex-showroom)
• 6 months – 1 year: 15% depreciation (IDV = 85%)
• 1 – 2 years: 20% depreciation (IDV = 80%)
• 2 – 3 years: 30% depreciation (IDV = 70%)
• 3 – 4 years: 40% depreciation (IDV = 60%)
• 4 – 5 years: 50% depreciation (IDV = 50%)

After 5 years, depreciation is no longer fixed — IDV is mutually agreed between you and the insurer, typically in the 15-25% of ex-showroom range, often pegged to scrap value plus condition. The depreciation is always computed against the ex-showroom price, not on the previous year's IDV.

The depreciation grid was prescribed by IRDAI in the Motor Insurance Tariff and has been carried forward post-detariffication (2007) as universal practice across the general insurance industry. The goal is to standardise claim settlement so that owners get comparable IDV regardless of which insurer issued the policy.

It also prevents under-insurance or over-insurance that would distort premium pricing and create disputes at claim time. Insurers retain a ±10% discretion on the final IDV they offer based on vehicle condition, mileage, accident history, and their underwriting view of the make/model. The depreciation schedule itself is non-negotiable.

For vehicles up to 5 years old, you cannot freely declare any IDV — you must pick within the insurer's offered ±10% range around the IRDAI grid value. The grid % is fixed; only the ±10% discretion is negotiable.

For vehicles older than 5 years, IDV is genuinely mutually agreed: you and the insurer negotiate a value, typically in the 15-25% of ex-showroom price band, with reference to scrap value, condition, mileage, and recent repair history.

In all cases, the IDV you accept becomes the binding claim cap for that policy year — choose it carefully, because once the policy is issued you cannot revise it mid-term. Use this calculator to know your IRDAI-grid baseline before you accept the insurer's offer.