Your car is stolen, you file a claim, and the insurer offers ₹3.2 lakh when a similar car sells for ₹5 lakh. That gap is your IDV - the Insured Declared Value - and it is one of the most common, most disputed numbers in motor insurance. The good news: you can challenge a low IDV, and there is a free escalation ladder built for exactly this fight.
Quick answer: IDV is the maximum your insurer pays if your vehicle is stolen or written off as a total loss. It is fixed at each renewal from the maker's listed price minus age-based depreciation. If the payout is too low, contest the surveyor's assessment, complain to the insurer's grievance officer, then escalate to IRDAI's Bima Bharosa portal and the Insurance Ombudsman.
IDV (Insured Declared Value) is the sum insured for your vehicle's own-damage cover. It is the most the insurer will pay on a total loss or theft, after deducting the salvage or wreck value. IDV is fixed afresh at the start of each policy year from the manufacturer's listed selling price, adjusted down for the vehicle's age through depreciation.
The motor own-damage cover is regulated by IRDAI (the Insurance Regulatory and Development Authority of India). The standard motor policy wording states that IDV is “deemed to be the SUM INSURED” for the policy and is set on the manufacturer's listed selling price of that brand and model, less depreciation by age.
The depreciation schedule used to fix IDV is the standard grid in the IRDAI standard motor policy (carried over from the erstwhile India Motor Tariff and still used as market practice):
For vehicles beyond 5 years and for discontinued models, IDV is set by mutual agreement between you and the insurer. The principle is simple: an older vehicle carries higher depreciation, which means a lower IDV.
Two rules decide your payout. First, on a total loss or theft the IDV is treated as the market value for the year, with no further depreciation. Second, a vehicle is a constructive total loss (CTL) when the cost of retrieval and repair exceeds 75% of the IDV - at which point you are paid the IDV less the wreck value rather than for repairs.
At renewal a low IDV cuts your premium slightly, so many owners accept whatever the portal shows. But IDV is also the ceiling on a theft or total-loss payout. Set it too low to save a few hundred rupees, and you lose tens of thousands when the worst happens. Many insurers let you set the IDV within a range around the depreciated value, so ask for the higher end at renewal and keep the maker's current price list as proof.
Real-life example: Ramesh Kumar of Pune insured a 3-year-old hatchback. On theft, the insurer offered ₹3.10 lakh, citing a 50% depreciation slab. Ramesh pointed out his car was only 3 years and 2 months old, so the correct slab was 40%, not 50%. He sent the maker's price list and the depreciation grid to the GRO, then escalated through Bima Bharosa. The insurer revised the IDV and paid an extra ₹38,000 - no court, no fee.
Be honest about RTI. The Right to Information Act 2005 applies only to public authorities. Among general insurers, the four public-sector companies - New India Assurance, National Insurance, Oriental Insurance and United India Insurance - are public authorities, so you can file an RTI with them to ask for the surveyor's report, the IDV calculation basis, and the claim file notings. Against a private insurer, RTI does not apply - your route is the IRDAI grievance ladder and the Ombudsman, not RTI.
For a step-by-step on filing any complaint against an insurer, see How to file an insurance complaint with IRDAI.
To: The Grievance Redressal Officer, [Insurer name] Subject: Dispute over IDV / payout on Claim No. [____], Policy No. [____]
Sir/Madam, I hold motor policy no. [____] for vehicle [make, model, year, registration no.]. My claim no. [____] is for [theft / total loss] reported on [date].
The settlement offered is ₹[____], which is below the correct Insured Declared Value. My vehicle is [age] old. Under the standard depreciation schedule, the applicable slab is [__]%, not the [__]% applied. I attach the manufacturer's price list and the policy schedule. The surveyor's wreck/salvage figure of ₹[____] also appears inflated; please share the basis.
I request a written, itemised IDV calculation and a revised payout within 15 days. If unresolved, I will escalate to IRDAI Bima Bharosa and the Insurance Ombudsman.
Enclosures: Policy schedule, surveyor report, FIR/accident record, maker's price list. Name / Signature / Date / Contact
(For a public-sector insurer, you may attach a parallel RTI application asking for the surveyor's report and the IDV calculation basis.)
Roughly. IDV is the maker's listed price minus age depreciation, and it is treated as the market value for total-loss and theft payouts during that policy year. It is the ceiling on what you receive.
Yes. Many insurers let you set IDV within a range around the depreciated value. Ask for the higher end and keep the maker's current price list to justify it - it raises your premium slightly but protects your payout.
In a total-loss or theft claim an IRDAI-licensed surveyor assesses the loss and the salvage value. You are entitled to a copy of the report and you can contest the assessment in writing with evidence.
It is a constructive total loss when the cost of retrieval and repair exceeds 75% of the IDV. You are then paid the IDV less the wreck value, instead of repair costs.
Under the Insurance Ombudsman Rules 2017, the Ombudsman can award compensation up to the limit set in the Rules - currently up to ₹30 lakh including relevant expenses. The award is binding on the insurer, who must comply within 30 days.
No. Filing with the Insurance Ombudsman is free. You do not need a lawyer, and you complain in writing using your own details and documents.
You can take the dispute to the normal courts or file before the Consumer Commission under the Consumer Protection Act 2019. The insurer, however, must comply with an Ombudsman award even if you pursue further remedies.