A Primer on the Return to Invoice Cover 

When you purchase car insurance, you can opt for certain add-on covers to further extend your policy coverage. One such add-on cover is Return to Invoice Cover or RTI Cover in car insurance. To determine whether to add this cover to your insurance plan, you must know everything about RTI coverage and how it can help you. 

This blog will discuss a guide on return to invoice cover; continue reading to learn more.

What is The Meaning of Return to Invoice Cover in Car Insurance?

Return to invoice or RTI cover is an add-on to your comprehensive motor insurance plan. This add-on cover allows you to get a compensation amount equal to the four-wheeler’s invoice value, meaning the original value for which you bought the car. The claim for this cover applies when the car is beyond repair or stolen. 

For example, in an unfortunate situation where your car gets stolen and the police cannot find it, this can put you in a dreadful situation. Besides this, if your car gets into a terrible accident and the damage to the car is beyond repair, you are eligible to raise a claim. 

This is when RTI covers can help. When you have a return-to-invoice cover in place, you have nothing to worry about, as it lets you get the original value at which you purchased your car. 

How Does an RTI Cover Work in a Car Insurance Policy?

The return to invoice insurance for a car is activated when your car is damaged beyond repair. As a policyholder, you can claim and get compensation for this loss. For motor car insurance claim purposes, the insured declared value or IDV of a four-wheeler is considered to be the maximum amount you receive for your damage beyond repair or stolen car. 

In some instances, a car’s IDV might be less than the last invoiced value of your four-wheeler. This can happen sometimes with older cars with a high depreciation rate. However, with an RTI cover, you will get the original purchase amount of the car and not the IDV.  

When your car gets lost or damaged beyond repair, you must inform your insurer and raise a claim immediately. While raising a claim, make sure you provide:

  • All the relevant information.
  • Documents.
  • Photos of the car or incident and any other required details.
  • If your car is stolen, you should attach a copy of the FIR when claiming. 

Your insurance provider will do an appropriate survey to determine what is required. You will receive the appropriate compensation once your car is declared lost or damaged beyond repair. So, with an RTI cover, you receive the car’s invoice value in compensation. 

Without RTI, you receive the insured declared value or IDV amount of a car as compensation. You can opt for RTI coverage when you buy a car insurance policy. Additionally,  RTI coverage needs to be renewed during car insurance renewal online to continue with the coverage.

Benefits of Return to Invoice Cover in Motor Insurance

Below are some benefits of returning to invoices for car insurance. Let’s discuss some of these benefits in detail.

You Can Get RTI Cover For Your New Car

If you own a new car, you probably take care of it more than an old one. Therefore, it can be a very emotionally draining experience if your new car gets stolen or damaged beyond repair. 

However, if you add RTI coverage when you purchase car insurance, you have nothing to worry about. With RTI cover, you will receive the original invoice for your car.

Increases the Range of Coverage

Return to invoice coverage is an additional coverage you can get with your car insurance plan. This RTI cover will increase the range or extent of your car insurance policy and make it more customised.

Beneficial in Case Your Car Gets Stolen 

Getting your car stolen can be quite a common occurrence in a few locations in India. Your hard earned money to purchase your dream car goes wasted. But with RTI cover, you can get the same amount you spent buying the new car as compensation.

Important Factors to Keep in Mind About RTI

Let’s look at some important factors to consider regarding RTI coverage.

  • RTI is an add-on cover that can increase your car insurance premium.
  • You can purchase an RTI add-on cover for your new car.
  • The RTI cover does not apply when your car suffers minor damages or dents.
  • In case of car theft, you must provide a copy of the FIR to your insurance provider so that they can process the RTI claim.

To Wrap It Up 

Return to Invoice Cover may not be suitable or needed for all. You should get coverage for your car insurance if you own a new car, live in a place where natural calamities are a constant occurrence, or live in a theft-prone area. Moreover, it is wise to always learn about the policy terms and conditions, inclusion and exclusions before adding it to your base car insurance plan.