What it calculates
For a two-wheeler, the Insured Declared Value (IDV) is roughly what the insurer would pay if the vehicle is stolen or damaged beyond repair. It is the ex-showroom price reduced for age using a standard depreciation schedule.
The No Claim Bonus (NCB) is a discount on the own-damage part of the premium that grows with each consecutive claim-free year. This calculator works out both from the schedules insurers follow.
How it works
IDV = (ex-showroom price + fitted accessories) × (1 − depreciation for the vehicle’s age). NCB is read from the claim-free-years schedule. If you enter an own-damage premium quote, the NCB discount and net own-damage premium are shown.
Formula
- Up to 6 months: 5%
- 6 months to 1 year: 15%
- 1 to 2 years: 20%
- 2 to 3 years: 30%
- 3 to 4 years: 40%
- 4 to 5 years: 50%
- More than 5 years: by agreement
- NCB by claim-free years 1→5+: 20%, 25%, 35%, 45%, 50%
How to use it
- Choose the policy type.
- Enter the ex-showroom price and value of accessories fitted.
- Choose the vehicle’s age and your claim-free years.
- Optionally enter the own-damage premium from a quote to see the NCB discount.
With the defaults for a bike priced at ₹1 lakh, 1–2 years old, with one claim-free year:
Why it helps
- Lets you check whether an IDV offered at renewal is reasonable.
- Shows how much a claim could cost you in lost NCB.
- Explains why third-party-only cover has no IDV or NCB.
Limitations
- Insurers may offer an IDV within a small range of the schedule figure.
- Vehicles over five years old use an IDV agreed with the insurer.
- Third-party premiums are notified by IRDAI and are not calculated here.
- Add-ons such as zero depreciation or engine protection are not included.
Frequently asked questions
Should I choose a lower IDV to cut the premium?
A lower IDV reduces the own-damage premium but also the payout for total loss or theft. Most people are better served by an IDV close to the vehicle’s market value.
Does NCB transfer to a new vehicle?
NCB belongs to the policyholder, not the vehicle, and can generally be transferred to a new vehicle of the same class with proof from the previous insurer.
What happens to NCB after a claim?
An own-damage claim usually resets NCB to zero at the next renewal unless you have an NCB-protection add-on.
Why doesn’t this show a premium?
Premiums are set by each insurer from its own rating tables, your health, age and other details. We don’t have access to those tables and won’t show an invented number. Use the estimate here to decide how much cover to ask insurers to quote for.
Sources
- India Motor Tariff — General Regulations 8 (IDV) and 27 (NCB) (reviewer to add the exact document link) — Insurance Regulatory and Development Authority of India (IRDAI) (checked 2026-09-27)