IDV calculation depends on the ex-showroom price for a new car. However as your car becomes old, the IDV takes into account the depreciation value of the car. IRDA offers a calculation chart for depreciation which is USED by insurance companies to arrive at the IDV value for older cars. For cars LESS than 6 months old the Depreciation Percentage to CALCULATE IDV is fixed at 5%. For cars between 6 months to 1 year the percentage is 15% and for 1 year to 2 years the percentage is 20%.

IDV calculation depends on the ex-showroom price for a new car. However as your car becomes old, the IDV takes into account the depreciation value of the car. IRDA offers a calculation chart for depreciation which is used by insurance companies to arrive at the IDV value for older cars. For cars less than 6 months old the Depreciation Percentage to calculate IDV is fixed at 5%. For cars between 6 months to 1 year the percentage is 15% and for 1 year to 2 years the percentage is 20%.