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Car insurance is not just a legal requirement but a necessity. The convenience and peace of mind it offers are worth the cost. While car insurance comes with a range of benefits, one key feature that has been gaining traction in India is the “Return to Invoice” (RTI) add-on, which ensures the policyholder gets full compensation for their car’s value in case of theft or total loss.
Let’s break down what return to invoice in car insurance is, its benefits, and the policies available in India.
What is Return to Invoice in Car Insurance (RTI)?
RTI is an add-on cover to your car insurance policy that bridges the gap between the Insured Declared Value (IDV) and the car’s original invoice value. While the basic comprehensive car insurance covers damage or loss to your car, it often doesn’t compensate the full value, especially as your vehicle depreciates over time.
In simple terms: If your car is stolen or damaged beyond repair, RTI ensures you receive the full purchase price of the car, including registration fees and road taxes, instead of the depreciated value. This add-on is crucial for those who want peace of mind, knowing they will recover the full financial cost of the car.
How Does It Work?
Let’s say you bought a new car worth ₹10 lakh. After a year, the car’s depreciated value (IDV) drops to ₹8 lakh. In case of total loss or theft, a regular insurance policy would only cover the IDV (₹8 lakh), leaving you to bear the remaining ₹2 lakh.
With an RTI add-on, however, you would get the original invoice value of ₹10 lakh, plus registration fees and taxes.
Eligibility for Return to Invoice Cover
- New Cars: This cover is typically available for cars that are no older than three years.
- Comprehensive Policy: You must have a comprehensive insurance plan to be eligible for the RTI add-on.
- Total Loss or Theft: RTI applies only in cases of total loss or theft, not for minor accidents or damages.
Why is RTI Important?
- Full Recovery of Loss: Unlike standard policies that only pay the current market value of the car, RTI ensures you’re compensated based on the original invoice price.
- Covers Depreciation: Car value depreciates quickly, but RTI protects you from this depreciation.
- Protection Against Inflation: With rising costs, the price of a new car may be significantly higher than what you paid. RTI helps ensure you’re not left short if you need to buy a new car.
How to Buy RTI in India?
- Contact your insurance provider: Most comprehensive car insurance plans offer an RTI add-on.
- Online: Many insurers provide the option to buy RTI add-ons online through their websites or insurance comparison platforms. Some of them are listed below.
- Through agents: You can also opt for the add-on through authorized agents who specialize in car insurance.
Top Return to Invoice Car Insurance Policies in India
Here are some of the top car insurance policies in India that offer Return to Invoice add-on:
TATA AIG Car Insurance
TATA AIG offers a Return to Invoice add-on that covers the difference between the IDV and the original invoice price of the car. You can purchase this add-on with their comprehensive car insurance policy.
Buy TATA AIG Car Insurance with Return to Invoice
Bajaj Allianz Car Insurance
Bajaj Allianz’s Return to Invoice add-on reimburses the difference between the IDV and the original invoice price of the car in case of total loss or theft. This add-on is available with their comprehensive car insurance policy.
Buy Bajaj Allianz Car Insurance with Return to Invoice
ICICI Lombard Car Insurance
ICICI Lombard’s Return to Invoice add-on covers the difference between the IDV and the original invoice price of the car in case of total loss or theft. You can purchase this add-on with their comprehensive car insurance policy.
Buy ICICI Lombard Car Insurance with Return to Invoice
Reliance General Insurance
Reliance General Insurance offers a Return to Invoice add-on that reimburses the difference between the IDV and the original invoice price of the car in case of total loss or theft. This add-on is available with their comprehensive car insurance policy.
Buy Reliance General Insurance Car Insurance with Return to Invoice
These are some of the top car insurance policies in India that offer Return to Invoice add-on. Always compare the features, benefits and premiums before choosing the best policy for your car.
Conclusion
The Return to Invoice add-on is a valuable feature for car owners in India, offering peace of mind by guaranteeing full compensation in case of theft or total loss. While the RTI add-on may increase your premium slightly, the financial protection it offers outweighs the cost, especially if you own a new or high-value car.
If you’re looking for comprehensive coverage that goes beyond the depreciated value of your car, RTI is an essential add-on. Make sure to explore policies offered by top providers like ICICI Lombard, Bajaj Allianz, and others to get the best deal for your vehicle.
Key Takeaways:
- RTI covers the difference between IDV and the original invoice price.
- It’s ideal for new cars, up to three years old.
- Available with comprehensive policies and covers total loss/theft only.
By understanding how RTI works, you can make more informed decisions when buying or renewing your car insurance in India.