Return to Invoice Cover (RTI)
Apr 1, 2021

Return to Invoice (RTI) Cover in Car Insurance

Gone are the days when a car was a luxury vehicle. Almost every household has a car these days. Our cities span over kilometres and commuting via public transport is an arduous task. This is when buying a car makes your life easy. Start your engine, travel in leisure and enjoy the journey! With easy finance options available, it has become even more affordable to own a car. So getting hands on your much-awaited dream car is not any hassle. While buying a car is not the end of your wishlist, few other compliances need to be followed like registration and a valid insurance copy. The Motor Vehicles Act, 2019, makes it mandatory for every vehicle registered in the country to have a valid copy of insurance certificate. Although third party car insurance cover is the minimum requirement, it is more logical to purchase a comprehensive insurance cover for more inclusive protection to you and your car. With a comprehensive policy, you can put-off any unexpected damages or injuries to oneself as well as others. Using a comprehensive cover, you can always ensure your car is in its pristine condition. One such nifty cover that you can opt for is return to invoice or RTI cover.  

Meaning of RTI car insurance

IDV or insured declared value is the maximum amount declared by the insured at the time of purchasing a comprehensive insurance plan. It is the closest estimate of the market value of the vehicle. But when declaring the IDV, depreciation is accounted to arrive at its true market value. Thus there is a gap between the original purchase price of your vehicle and its current market value. This gap is filled using a return to invoice cover. Costs that you incur towards the purchase of your car can be reimbursed in case of theft or a constructive total loss to your car using the RTI car insurance. When we refer to cost, we mean the road taxes too! The only silver lining when your car is no longer there.  

Applicability of return to invoice cover

The RTI car insurance policy differs among different insurance companies for its applicability. Some insurers offer a return to invoice cover for cars not more than three years old whereas a few others up to five years.  

Non-applicability of return to invoice add-on

Return to invoice add-on is generally purchased by those who are genuinely interested in ensuring their car remains intact for the longest possible time. Thus these individuals prefer to buy comprehensive car insurance policy with a return to invoice add-on. Here are a few points that you need to remember -
  • An RTI cover does not is not inclusive of old cars as per the terms & conditions of the policy. It is specifically available for new cars only where the terms of your policy decide its applicability as discussed above.
  • Merely a case of complete damage or total loss is covered under such insurance add-on. Minor scuffs or routine repairs are not covered under this additional insurance cover.
  • Return to invoice add-on is only available when you opt for a comprehensive insurance policy.
  While this add-on is available at a fraction of the cost of your base policy, it helps you know that you're financially covered in case your car ends up in total damage. Along with it, there is increased coverage under the insurance policy making it a more wholesome cover when combined with other suitable add-ons. Make sure you select the right add-ons to ensure all-round protection from your vehicle insurance plan.

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