Multiple choice

In motor insurance, the value of the vehicle, which is found by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage, is known as:-

  1. Compensation provided

  2. IDV

  3. Depreciation

  4. Listed selling price

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

In case of motor insurance, the sum insured is the insured's declared value [IDV]. It is the value of the vehicle, which is found by adjusting the current manufacturer'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.