Shedding light on Return to Invoice in motor insurance

Shedding light on Return to Invoice in motor insurance  30th November 2022

Most people are familiar with motor insurance, its benefits, and its exclusions. It is an efficient financial instrument that supports us when our insured vehicle encounters an unfortunate incident. Motor insurance comes with many optional coverages that may be useful to you. Did you know about the Return to Invoice or RTI coverage? Choosing this coverage while you buy motor insurance online can be a great help. Let's learn more about RTI coverage, its benefits, and its functionality.

What is "Return to Invoice" in motor insurance?

Return to invoice is an optional coverage for your car insurance. It lets you get money equal to the car's original value, also called the invoice value. This coverage is not required by law, so you can buy motor insurance online and include RTI coverage as an add-on. It is an application you use when your car faces total loss, such as if someone steals it or it gets fully damaged by fire or a natural calamity.

How does it work?
In normal car insurance coverage without an RTI add-on, you can get the maximum claim amount as your car's "insured declared value" (IDV). IDV is always less than the invoice value of the car.
However, with car insurance having RTI coverage, you can get the maximum amount of claim on the invoice value of your car. In simple words, when you have RTI coverage in your car insurance, you can get the road value of your car when it is stolen.

How is it calculated?
You can easily determine the amount of insurance that comes with RTI by looking at the car's total price when you buy it. The return to invoice includes the total car price, such as road tax paid, ex-showroom price, and registration cost.

What is covered in Return to Invoice?
If your car gets stolen or damaged beyond repair, you can raise a claim against the RTI. Let's look at the different circumstances when this coverage can benefit you:

● When you don't have secured parking

● Living in an area where car thefts are common

● Living in an area prone to natural calamities such as floods, landslides, and more

What does not apply in the Return to Invoice?

Sometimes, the RTI cover may not work, and you can't claim the insured amount. Here are some situations when this cover is not applicable, including:

● Damage to your car when someone else is driving

● You can't avail RTI add-on if your car is older than 3 years from the buying time

● You can't avail of the RTI cover for minor dents and grazing on the car body

● You must submit a copy of the FIR to process the return-to-invoice claim

Benefits of Return to Invoice in motor insurance.

Some benefits of RTI in car insurance include:

● It increases the scope of your car insurance coverage

● It is beneficial when you live in an area where car thefts are common

● It is available for new cars. Hence, you can give your new car more care with this cover

● It is available with a comprehensive car insurance policy

Once you understand everything about the Return to Invoice, consider adding this optional cover. RTI can help you when your car is damaged beyond repair. If you live or park your car in a place where theft, natural calamity, or fire is common, you should add RTI to your policy when you buy motor insurance online.

Click HERE to buy motor insurance online.

Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.