How IDV is calculated
IDV = (ex-showroom price + non-factory accessories) × (1 − depreciation %)
Insurers in India use the depreciation slabs from the India Motor Tariff for vehicles up to five years old:
| Age of vehicle | Depreciation for IDV |
|---|---|
| Up to 6 months | 5% |
| 6 months – 1 year | 15% |
| 1 – 2 years | 20% |
| 2 – 3 years | 30% |
| 3 – 4 years | 40% |
| 4 – 5 years | 50% |
| Over 5 years | Agreed between you and the insurer |
Should you choose a higher or lower IDV?
Insurers allow a range around the calculated IDV. A higher IDV means a bigger payout on theft or total loss but a higher premium. A lower IDV saves premium but you get less if the worst happens. When buying a used vehicle, the IDV is also a rough sanity check on the asking price.
Depreciation on parts (in a claim)
In an ordinary damage claim, insurers also deduct depreciation on replaced parts unless you have a zero-depreciation add-on: commonly 50% on rubber, nylon, plastic and batteries, 30% on fibreglass, and nothing on glass. Metal parts are depreciated by vehicle age — the calculator shows the rate for yours.
Questions people ask
Is IDV the same as the resale value?
Does road tax or registration count in IDV?
What is zero depreciation cover?
Sources
Your insurer’s policy terms decide the final IDV and claim deductions. Last reviewed: November 2026.