IDV in two wheeler insurance policy copy is the insured declared value which is the maximum value of the bike considered for the purpose of insurance. It is also the maximum liability of the insurance company in case of any loss or accident. The insured declared value is arrived based on the age of the vehicle, as the depreciation is accounted for each passing year. Higher the IDV, higher would be the liability of the insurance company and higher the premium to be paid by the customer. It is important to ensure that your bike is insured with sufficient IDV which comes handy at the time of loss. Insured declared value for new vehicle is calculated as 95% of the vehicle ex-showroom price and thereafter the IDV decreases at 10% each year to account for the depreciation of the vehicle.