All About Return to Invoice Cover (RTI)

Return to Invoice Cover (RTI) - BimaBandhu
To better understand the importance of Return to Invoice add-on, you need to consider the threshold for total loss. Read more here.

Whether you’re a seasoned driver or a new car owner, it is true that understanding the intricacies of car insurance can be overwhelming. However, delving into specific coverages can make a significant difference when the unexpected happens.

Picture this: you’ve just purchased your dream car and are cruising down the open road with a sense of excitement. But amidst the excitement lies the sobering reality of potential risks – theft, accidents, or natural calamities that could render your beloved vehicle inoperable. This is where Return to Invoice cover can step in as a crucial safeguard.

RTI add-on acts as a safety net that fills the gap between the IDV and the actual invoice value of your car. It encompasses the car’s purchase price and factors in additional expenses like registration fees and applicable taxes. In the unfortunate event of theft or total loss due to irreparable damage, RTI ensures you receive the original purchase value (on-road price) of your car.

To better understand the importance of Return to Invoice add-on, you need to consider the threshold for total loss. When repair costs surpass 75% of the IDV, insurers typically deem the vehicle a total loss. At this juncture, RTI becomes invaluable, providing financial respite by compensating for the disparity between the IDV and the actual invoice value.

However, you should note the limitations of RTI. While it offers comprehensive coverage for significant damages, minor repairs may not fall under its purview. This delineation emphasises the importance of discerning when RTI is applicable and when alternative coverage options may be necessary. In essence, Return to Invoice Cover serves as a safety buffer, ensuring that your investment in your vehicle is protected against unforeseen circumstances. 

Features of Return To Invoice Cover

While standard comprehensive and standalone own-damage plans offer coverage for various unfortunate events, they may fall short of bridging the gap between the Insured Declared Value (IDV) and the actual invoice price of your car. This is where the features of RTI add-on come into the picture.

1. Comprehensive Coverage

RTI Cover is available as an add-on option with both comprehensive car insurance plans and standalone own-damage policies. This versatility allows policyholders to tailor their coverage according to their specific needs.

2. Enhanced Compensation

Although RTI Cover typically incurs an additional cost compared to standard policies, its benefits outweigh the premium increase. By opting for this add-on, policyholders can receive compensation equivalent to the invoice price of their vehicle. This includes the selling price, registration charges, depreciation amount, and road tax charges. In the event of total loss, this comprehensive compensation ensures minimal financial loss for the policyholder.

3. Selective Applicability

You should be aware of the fact that RTI coverage applies strictly in cases of significant damage where the insured vehicle becomes unusable. Unlike minor damages, which may not trigger RTI benefits, instances of total loss warrant the full utilisation of this add-on cover. This selective applicability underscores the importance of assessing the severity of damage and understanding when RTI becomes relevant.

Also Read: All About Roadside Assistance Add-on

Who Should Opt For Return To Invoice Cover?

Return To Invoice cover stands as a crucial addition to any car insurance policy as it offers enhanced protection against unforeseen circumstances. While it’s beneficial for all car owners, certain individuals stand to gain significantly from its inclusion in their insurance portfolio.

  • Individuals residing in regions with a higher prevalence of car theft
  • Those living in areas with Inadequate parking facilities or the absence of secure parking spaces 
  • Individuals who frequently travel long distances 

Benefits of Return to Invoice Add-On Cover

The benefits of Return to Invoice add-on cover can significantly enhance the efficacy of your car insurance policy. Here are some compelling advantages of opting for RTI:

  • It can empower policyholders to tailor their insurance plans according to their specific needs. By incorporating this add-on, individuals can augment the coverage provided by their standard car insurance policy. 
  • In instances of total loss, where the cost of repairing the vehicle exceeds its resale value, RTI add-on cover can emerge as a crucial asset. Rather than investing in futile repairs, policyholders can rely on RTI to provide full compensation equivalent to the original purchase price of the car. 
  • The emotional attachment and financial investment associated with new cars necessitate specialised protection. RTI add-on cover addresses these concerns by offering heightened security for new vehicles.

Recommended Read: NCB in Car Insurance – Explained 


Can I add Return To Invoice add-on with a third party car insurance plan?

Return To Invoice add-on cover, like other car insurance add-ons, is not available with third party car insurance plans. These add-ons are typically offered with comprehensive car insurance policies or standalone own-damage plans. While third party insurance covers liabilities arising from third-party damages, it doesn’t include add-ons.

When can I select the Return To Invoice cover?

You have the option to add Return To Invoice cover either when purchasing a new car insurance policy or during its renewal. This flexibility allows you to assess the coverage needs and make informed decisions based on their individual requirements. Whether securing a new vehicle or enhancing the protection of an existing policy, opting for this add-on cover ensures comprehensive financial protection against total loss scenarios.

Can I add other add-ons along with the RTI add-on to my car insurance plan?

You can include multiple add-ons alongside Return To Invoice cover with your standard comprehensive or standalone own-damage car insurance policy. Whether it’s for enhanced coverage against specific risks like zero depreciation, roadside assistance, or engine protection, adding additional add-ons allows you to customize your insurance plan according to your individual needs and preferences. 

Can I use my RTI cover in case of minor damages?

Return To Invoice cover is specifically designed to provide financial protection in the event of total loss scenarios, where the cost of repairing the vehicle exceeds 75% of the Insured Declared Value (IDV). It does not extend coverage to minor damages or repairs. In such cases, where the damage does not meet the threshold for total loss, alternative coverage options within your car insurance policy would apply. 

Will the Return To Invoice cover compensate for the road tax I paid at the time of buying my car?

Return To Invoice cover generally ensures that you receive compensation equivalent to the amount specified in the invoice, which includes the selling price of the car and additional expenses (such as registration charges and applicable taxes, including road tax). This comprehensive compensation ensures that you are reimbursed for the total amount you paid for your vehicle. You can check the policy document or ask your insurer for more details.

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