Multiple choice

Insured's declared value in motor insurance includes:

  1. registration

  2. manufacturer's cost price

  3. manufacturer's selling price

  4. arbitrary price component

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Insured's declared value in motor insurance includes manufacturer's selling price. In case of motor insurance, the sum insured is the insured's declared value [IDV]. It is the value of the vehicle, which is arrived at by adjusting the current manufacture's listed selling price of the vehicle with depreciation percentage as prescribed in the IRDA regulations. Manufacturer's listed selling price will include local duties / taxes excluding registration and insurance.