I bought a car in 2009. Now my car insurance renewal is due. My agent says that the insured declared value (IDV) of my car has not changed since last year. He is not able to explain what it is. Can you please explain what IDV is and how is it calculated. What impact will it have on my policy?

The relevance of IDV is realized in the event of total loss/ theft of the car. Various surveyors/ insurance companies come out with IDV list for every model/ make. Its IDV valve as mentioned by you should change – it should go down. By saying that value has not gone down may be that agent is trying to make some extra money. You may send details to Ria Insurance Brokers Pvt. Ltd. and they will tell you what is the correct IDV for you car.