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What is IDV and NCB? Why are they important for Two-Wheeler Insurance?

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When purchasing a new two-wheeler, investing in a good insurance policy for the same is crucial. However, when choosing the best possible insurance plan for your beloved bike, it is imperative that you are aware of aspects like IDV and NCB. 

What is IDV in insurance?

IDV full form in insurance is Insured Declared Value. In simple words, IDV meaning is the market value of your vehicle. Being an important factor, it should be considered before buying two-wheeler insurance as it determines the amount that would be reimbursed to you in case of theft or total loss of the bike.

What is the importance of IDV in insurance?

Now that you know what is IDV in insurance, let see why it is important:

  • Your insurance premium is directly proportional to the IDV of your motorbike. This means with time as your bike’s IDV will decrease your insurance premium will also decrease.
  • The  IDV of your bike will help you in claiming the right amount if your bike suffers a major loss or gets stolen.
  • Along with the premium amounts, even the Own-Damage coverage premiums are calculated in proportion to the IDV of your bike.

How is IDV in bike insurance calculated?

Before compare insurance plans, deciding on the right IDV at the time of buying or renewing your two-wheeler insurance is essential so that you can pay an accurate premium payment and also be able to claim the right amount at the time of damage/ theft. 

You can calculate IDV easily through this formula: 

Insured Declared Value = (Bike’s market value – depreciation value) + ( cost of additional accessories – depreciation value of the parts)

You can also refer to an online IDV calculator for the accurate value.

What is NCB in Bike Insurance?

NCB full form in insurance is No Claim Bonus. NCB or No Claim Bonus is a discount that is offered by the insurer to the policyholders in case the latter has not made even a single claim during the tenure of his two-wheeler insurance policy. A no-claim bonus is a discount that is applicable at the time of the renewal of the policy and it is also transferable from the older bike to the newer bike or even to a different insurance company.

What is the importance of NCB in insurance?

A No Claim Bonus can prove to be very beneficial and rewarding for a policyholder. Here are some of its important features:

  • Insurance companies offer No Claim Bonuses to motivate drivers to ride safely and claim the discount.
  • The acquired NCB can help you in reducing your insurance premium for your new bike up to 50%.
  • NCB is easily transferable whether you change your two-wheeler or even the insurance company.

How to check NCB in bike insurance?

After reading about what is NCB in bike insurance and how it is important for you, let’s see how it is calculated.

The No Claim Bonus is calculated at the end of every year and applied as a discount to the premium of the second year and so on. The discounts are as follows:

Claim-free Years

Applicable discounts

1st year


2nd year


3rd year


4th year


5th year



Now that you understand what is IDV and NCB are, it would help you in selecting an appropriate insurance plan for your bike. 

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