For vehicles older than five years, the ‘sum insured’ is to be determined mutually by your insurer and you. This sum insured, referred to as the insured declared value (IDV), is what your insurer will pay you if your vehicle is stolen or damaged beyond repair. In other words, that’s the maximum your insurer is liable to pay you.

Generally, the insurer gives you an IDV estimate. If you think it undervalues your car, ask for a review. If the insurer doesn’t relent, your only option is to ask another insurer for a higher IDV. I’ve seen this happen for luxury cars, but not for entry-level cars like a 800, where the valuation is more efficient.

Cases of total loss are few—most accidents require the car to be repaired. This aspect of your policy, where the insurer gives you part-compensation for repair, remains unchanged even if the IDV is lowered.