Buying a car is no more a matter of luxury or status maintenance. Rather, having a car has become almost an integral part of life. Banks and NBFCs have made it easy for people to buy cars conveniently. People are also well-versed with concepts like car insurance, different types of coverage, benefits of car insurance, and so on.

Basically, car insurance can protect the insured against financial liabilities in case of any mishap. However, if certain points are taken care of, car insurance can bring several other benefits to the insured as well. The Return to invoice protection cover add-on is one such factor that you should definitely consider.


RTI in car insurance – What does it mean?

RTI in car insurance or Return to Invoice in car insurance is an add–on cover. Such add-ons can be included in a comprehensive car insurance policy. If you have this add-on cover included in your car insurance plan, then the insurer will have to return the nearest value of the car, which is mentioned in the original invoice. This happens only when your car is stolen or is heavily damaged.

If you have bought a new car, you may think of investing in Return to Invoice car insurance. Remember that adding an RTI cover has not been made mandatory by law.


Applicability of RTI cover in car insurance

  • If your car is less than three to five years old, then you can definitely reap the benefits of RTI cover in car insurance. To make a claim, you will require the original invoice, as well as your car, should be in irreparable condition.
  • If you have invested in a third-party liability policy, then, unfortunately, you won't be getting the RTI coverage on your car insurance.
  • If you make a claim for RTI coverage in case of minor damages to your car, then know that your insurer can easily reject those claims. RTI coverage is provided only in case of theft or non-corrigible damage.
  • After a specific number of car insurance renewals, the insured person won’t be able to purchase RTI add-on car insurance.


How does Return to Invoice cover operate?

In case the insured person has not purchased an RTI add on the cover, his claim amount will be restricted by the IDV of the car.

Now, what on earth is the IDV of the car? Well, the IDV or Insured Declared Value of a car is its current value. Because of depreciation, the IDV of your car will always be lower than the invoice value of the car. So, in case your car gets damaged beyond repair or gets stolen, the RTI add-on coverage can bring you the on-road price of your car.


Advantages of purchasing RTI coverage in car insurance

  • Beneficial for owners of brand-new cars

If you are someone who is way too attached to his/her car, then the RTI add-on cover can indeed bring great relief to you. The loss of your favourite car can be an emotionally draining experience. In such a situation, when you get the on-road value of the car, it can bring some solace to your mind.

  • Scope of coverage gets enhanced

Remember that Return to Invoice is an add-on coverage, and it increases the scope of coverage of your car insurance policy. RTI add-on car insurance enables the policyholder to customise the car insurance policy.

  • Can compensate complete loss situation

Complete loss is the scenario when your car is absolutely non-corrigible, or the expense of repairing it surpasses the resale value of the car. The policyholder can handle this loss tactfully by using RTI insurance cover. It brings to the insured invoice value of the car, and thus he no more needs to worry about issues like salvage, damage, or repairs.

  • Can compensate in case of theft

Car theft issues are not so uncommon. Hence, having a return to invoice cover in car insurance will help you to cope up with the shock of car theft by offering the on-road price.


Who should invest an RTI in motor insurance?

You should invest in an RTI add-on cover in car insurance in case you:

  • Own a new car: Return to Invoice add-on is highly beneficial for those who own a new car.
  • Live in an area that are vulnerable to natural calamities: If your car gets damaged incorrigibly because of any natural calamity, then know that Return to Invoice in motor insurance will keep you sorted.
  • Live in an area where car theft cases are rampant: If your car gets stolen, you can place a claim to the insurer.

How can one calculate the RTI?

This is no rocket science, and you do not need the help of an expert to calculate the return to invoice claim amount. Simply check the invoice value on the original invoice of the car. You will get an amount which is almost equal to the on-road price of your car.




Q1: My car is 3 years old. Can I get an RTI add-on cover?

Ans: Yes, of course. You can purchase an RTI insurance add-on cover in case your insurer is offering one.


Q2: When is the right time to buy an RTI add-on cover?

Ans: The best time to purchase an RTI add-on insurance cover is when you are getting yourself a car insurance policy. You can also get one during policy renewal, given that your car is between three to five years old.


Q3: Am I allowed to invest in other add-ons in case I have already bought a Return to Invoice add-on cover?

Ans: Of course! The insured person is allowed to buy as many add-ons as he wants to customise and enhance his car insurance plan.


Q4: My luxury car is 7 years old. Can I buy an RTI add-on cover now?

Ans: RTI add-on covers should preferably be bought when your car is new (between 3 to 5 years). After this, your insurer may not allow you to use the RTI add-on.

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