When buying an insurance policy for your bike, it is important to understand the basic terminologies that come with it. The most important ones are NCB and IDV – since they have a direct impact on your bike insurance premium rates.
Therefore, to save on your bike insurance premium, let us understand NCB and IDV to help you get the best bike insurance policy.
What is IDV In Bike Insurance?
The Insured Declared Value (IDV) is the optimum amount that the insurance company promises to pay in case the insured bike faces a total loss under own damage cover in bike insurance or a comprehensive plan.
For calculating IDV, the current value of the bike when purchasing the insurance policy is taken into consideration. Also, it is important to note that a bike is a depreciating asset. This means the IDV for your bike will go down each …