An Insured Declared Value or an IDV (of the sum insured under your car policy) reflects the value of your car. This value is determined based on the manufacturer's listed selling price and depreciation based on your car's age. The IDV is fixed at the start of each policy period for each insured vehicle. The IDV applies to Total or Constructive Total Loss (TL/CTL) claims only. For TL/CTL claim settlement, this IDV will not change during the currency of the policy period in question. The insurer's liability shall in no circumstance exceed the IDV as specified in the policy schedule less the value of the wreck & excess.
The IDV depreciates with age, which means car insurance prices for a new car will be higher than an old car.