The Power of IDV and NCB: Maximizing Two-Wheeler Insurance Benefits


When it comes to securing your two-wheeler, there are key elements that can help you make the most out of your insurance coverage. By understanding and leveraging these factors, you can ensure optimal benefits and protection. Discover the power that lies within your two-wheeler insurance policy, enabling you to safeguard your vehicle and enjoy peace of mind on the roads.

What is the Insured Declared Value?

The Insured Declared Value (IDV) is a crucial concept in the realm of two-wheeler insurance. It represents the approximate current market value of your vehicle and serves as the maximum amount that the insurance company would pay in the event of theft or total loss. The IDV takes into account various factors, including the age of the two-wheeler and the extent of depreciation.

Think of IDV as the financial protection provided to you by the insurance company. It ensures that you are adequately compensated for the loss or damage to your vehicle. Setting the right IDV is essential, as it directly impacts your insurance premium. A lower IDV may reduce your premium initially, but it can leave you underinsured, receiving insufficient compensation in case of a claim. Conversely, setting a higher IDV may lead to a higher premium, costing you more than necessary.

To determine the ideal IDV, consider factors such as the current market value of your two-wheeler, its condition, and any additional accessories. Striking the right balance ensures that you have sufficient coverage to safeguard your vehicle’s value without paying more than required.

What Should be the IDV of Two-Wheeler Insurance?

The Insured Declared Value (IDV) of your two-wheeler insurance should ideally be the approximate current market value of your vehicle. It represents the maximum amount you would receive in case of theft or total loss. Setting the right IDV is crucial as it directly affects your insurance premium and the compensation you would receive. A lower IDV might save you on premium costs initially but could result in insufficient coverage during a claim.

On the other hand, setting an excessively high IDV could lead to higher premiums. It is important to strike a balance by considering factors such as the age, condition, and market value of your two-wheeler. This ensures that you have adequate coverage that aligns with the value of your vehicle and provides financial security in the event of an unfortunate incident.

What is No Claim Bonus (NCB)?

No Claim Bonus (NCB) is a unique benefit offered by insurance companies to policyholders who refrain from making any claims during their policy term. It serves as a reward for safe and responsible driving. NCB allows you to enjoy a discount on your two-wheeler insurance premium when you renew your policy. The discount percentage grows progressively with each claim-free year, giving you the opportunity to save significantly on your premium costs. This bonus is portable, meaning you can transfer it to a new insurance provider and continue enjoying the benefits.

NCB serves as an incentive for policyholders to drive carefully, avoid accidents, and maintain a clean claims record, ultimately contributing to lower insurance expenses and promoting a culture of responsible driving.

Can NCB be Transferred to Another Vehicle?

No Claim Bonus (NCB) can be transferred to another vehicle owned by the same policyholder. When you purchase a new vehicle and want to transfer your existing NCB, you can do so during the renewal of your two-wheeler insurance policy. The accumulated NCB can be transferred to the new vehicle, allowing you to enjoy the benefit of reduced premium costs for insurance coverage.

However, it’s important to note that NCB can only be transferred to a vehicle of the same class or category. It cannot be transferred to another person or used for a different type of insurance policy. Transferring NCB to a new vehicle provides you with a financial advantage while maintaining your track record of safe driving and claim-free years.


Understanding the Insured Declared Value (IDV) and No Claim Bonus (NCB) is vital when it comes to two-wheeler insurance. The IDV ensures that you have appropriate coverage aligned with the market value of your vehicle, striking a balance between premium costs and compensation. On the other hand, NCB rewards safe driving by offering discounts on premium costs for claim-free years, promoting responsible behavior on the road. These aspects play a significant role in maximizing the benefits of your insurance policy while providing financial security and incentives for maintaining a good claims record. By grasping the significance of IDV and NCB, you can make informed decisions, save on premiums, and enjoy a comprehensive and rewarding two-wheeler insurance experience.

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