The Insured’s declared value is deemed to be the sum insured for the purpose of the Motor Insurance Policy and is fixed at the commencement of each policy period for the insured vehicle. The IDV is generally treated as the Market Value throughout the policy period without further depreciation for Total (TL) or Constructive Total Loss (CTL) claims. CTL is understand as and when the repair and retrieval cost of the vehicle as permitted under the policy exceeds 75% of the IDV. The IDV is usually fixed on the basis of the manufacturers’ listed selling price of the brand and model and is adjusted for depreciation up to age 5 years. IDV for vehicles over 5 years and obsolete vehicles is to be determined on the basis of an understanding between the insurers and insured. For the purpose of TL/CTL claim settlements, IDV does not change during the currency of the policy. It is clearly understood that the liability of the insurer shall in no case exceed the IDV subject to reduction of the value of the wreck on “as is where is” condition.