IDV (Insured Declared Value) is the maximum amount your insurer pays in case of total loss or theft. It reduces every year as per IRDAI's standard depreciation schedule.
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Current IDV
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Depreciation %
No Claim Bonus rewards you for every year you don't make a claim, with a discount on your Own Damage premium — up to 50% after 5 claim-free years. NCB transfers to a new vehicle or new insurer.
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NCB Discount
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Amount Saved
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Net OD Premium
Third-Party insurance is legally mandatory in India, but it only covers damage to others — not your own vehicle. Comprehensive covers both. See the real cost difference below.
Ex-Showroom Price₹8,00,000
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💰 IRDAI Standard IDV Depreciation Schedule 2026
Vehicle Age
Depreciation Applied
Not exceeding 6 months
5%
6 months - 1 year
15%
1-2 years
20%
2-3 years
30%
3-4 years
40%
4-5 years
50%
Above 5 years, IDV is mutually agreed between insurer and insured based on inspection. Third-Party premium rates used here (₹2,094 / ₹3,416 / ₹7,897 for cars by cc) are the current IRDAI-notified rates, confirmed against multiple sources as of July 2026. Important: MoRTH and IRDAI are actively discussing a 10-25% hike to these rates for FY 2026-27, which had not been officially gazetted as of this page's last update — if you're renewing or buying a new policy, check your insurer's portal or the IRDAI website for the applicable rate on your policy start date. Own Damage premium figures are indicative estimates only.
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Car & Bike Insurance Premium Calculator 2026 — Estimate Your Motor Insurance Cost
Motor insurance in India comes in two core forms: Third-Party (TP), which is legally mandatory under the Motor Vehicles Act and covers damage or injury you cause to others, and Comprehensive, which additionally covers your own vehicle against accidents, theft, fire, and natural disasters. Third-party premiums are fixed annually by IRDAI based on engine capacity, so every insurer charges the same TP rate — the real cost difference between insurers shows up entirely in the Own Damage (OD) component of a comprehensive policy.
Your OD premium is calculated on your vehicle's IDV (Insured Declared Value) — essentially its current market value after standard depreciation. A brand-new car has 5% depreciation applied to its ex-showroom price, rising to 50% by year five. The single biggest lever you control on your premium is No Claim Bonus (NCB): every claim-free year earns a bigger discount on your OD premium, from 20% after year one up to 50% after five straight years without a claim — and this bonus transfers with you even if you switch insurers or buy a new vehicle, as long as you inform your new insurer.
Add-ons like Zero Depreciation (waives depreciation deduction on claims, especially valuable for cars under 5 years old), Engine Protection (covers water ingress and engine damage — critical in flood-prone cities), and Roadside Assistance increase your premium modestly but can save far more at claim time. This calculator gives 2026 indicative estimates using IRDAI's standard depreciation schedule and typical market OD rates — always compare live quotes from 3-4 insurers before buying, since actual premiums vary by exact model, city, and insurer risk profile.
FAQ — Vehicle Insurance Premium Calculator 2026
What is IDV and how is it calculated? ▾
IDV (Insured Declared Value) is the maximum sum insured your policy pays in case of total loss or theft. It equals the manufacturer's listed selling price minus standard depreciation based on vehicle age — 5% for a vehicle under 6 months old, rising through 15%, 20%, 30%, 40%, to 50% by 4-5 years, as fixed by IRDAI.
What's the difference between Third-Party and Comprehensive insurance? ▾
Third-Party is legally compulsory and covers only damage/injury you cause to another person, vehicle, or property — it pays nothing toward your own vehicle. Comprehensive includes Third-Party cover plus Own Damage cover for your own vehicle against accidents, theft, fire, and natural calamities, and is strongly recommended even though it costs more.
How does No Claim Bonus (NCB) work? ▾
NCB is a discount on your Own Damage premium for every consecutive year you don't file a claim — 20% after 1 year, 25% after 2, 35% after 3, 45% after 4, and capping at 50% after 5+ claim-free years. It belongs to you, not the vehicle — it transfers if you sell your car and buy a new one, or switch insurers, as long as you get an NCB retention certificate from your previous insurer.
Is Zero Depreciation cover worth it? ▾
Zero Depreciation (also called "bumper-to-bumper") waives the depreciation deduction insurers normally apply to plastic, fibre, and rubber parts during a claim, meaning you get the full replacement cost instead of a depreciated amount. It typically adds 15-20% to your OD premium but is highly recommended for cars under 5 years old, especially in cities with heavy traffic or flood risk.
Why is third-party premium the same across all insurers? ▾
IRDAI fixes Third-Party premium rates annually based purely on engine capacity (for cars) or cc (for two-wheelers), and every insurer in India must charge exactly this rate — it cannot be discounted or negotiated. This is why insurers compete only on Own Damage pricing, service quality, claim settlement ratio, and add-on benefits.
What happens to NCB if I make a claim? ▾
Making even one claim resets your NCB to 0% at your next renewal, regardless of how many claim-free years you had built up. For small repair costs close to your NCB discount value, it's often cheaper to pay out of pocket and preserve your NCB rather than filing a claim — this calculator's NCB tab helps you see exactly what your bonus is worth in rupees.
Is the Third-Party premium about to increase? ▾
Yes, likely. Third-Party premiums have been mostly frozen since 2018-19 (only minor adjustments), but MoRTH and IRDAI have been actively discussing a 10-25% hike for FY 2026-27 based on rising claim costs. As of this page's last update, the new rates had not been officially gazetted. If you're due for renewal, check your insurer's portal or the IRDAI website on your policy start date for the confirmed applicable rate — some advisors recommend renewing slightly early if a hike announcement is imminent.
Are these premium estimates accurate for 2026? ▾
These are indicative estimates using IRDAI's standard IDV depreciation schedule and typical market Own Damage rates, meant for budgeting and comparison. Actual premiums vary by exact vehicle model, insurer, city, prior claims history, and add-on selection. Always get and compare live quotes from at least 3 insurers before purchasing a policy.