Motor vehicles are insured for a fixed value referred to as insured's declared value (IDV). If the vehicle is stolen or the vehicle is totally damaged and beyond repairs in an accident, the claim amount payable is determined on the basis of the IDV.
The IDV is estimated on the basis of the manufacturer's listed selling price of the brand and model of the vehicle (and accessories) at the commencement of the car insurance, after adjusting for depreciation every year.
Therefore, IDV = Ex-showroom price + sales tax -- (depreciation + registration + insurance).
Also see: 6 must-have insurance policies