Return to Invoice (RTI) in Car Insurance

What is RTI covered in Car Insurance?

Buying a car is a huge investment, and unforeseen circumstances where your vehicle is stolen or irreversibly damaged might put you in a difficult situation. The RTI or Return to Invoice cover comes in handy to help you avoid such a situation.

RTI or Return to Invoice, is an add-on coverage that a policyholder can opt for along with their comprehensive car insurance plans. Return to Invoice provides coverage of compensation amount equal to the insured car’s original invoice value. It helps in balancing the difference between the insurance declared value and the car’s original invoice value during the claim settlement process. The insurance claim against RTI only applies in cases where the policyholder’s car is stolen or is beyond repair.

Let’s have a detailed look at RTI coverage in car insurance, benefits, eligibility, and more.

Benefits of RTI Insurance Cover

  • RTI add-on cover is best suited for newly purchased cars to get the compensation amount as the invoiced value.
  • It safeguards policyholders against high financial liabilities.
  • Car insurance plans with RTO add-on increases the scope of coverage offered.
  • Provides better protection in case of theft or damage, as you will get the claim amount closest to the value of the car.
  • RTI add-on provides coverage in case there is any damages caused to the policyholder’s car.

RTI covers eligibility, and who can opt for it?

Return to Invoice (RTI) cover is only applicable for insured cars not older than 3 or 5 years (specified by the insurance provider), as after that, the vehicle’s value depletes enormously. So, anyone who owns a new car and lives in a theft-prone or disaster-inclined area can opt for RTI cover. Car insurance plans with RTI add-ons ensure that you get the entire invoice amount in case of theft (where police are unable to trace the vehicle) or complete damage.

How does RTI Car Insurance Cover Work?

To settle RTI claims, the vehicle’s insurance declared value (IDV) is taken into consideration. It is the maximum amount policyholders receive as compensation for their car. However, in the case of older cars with high rates of depreciation, the IDV might be lower than the original invoiced value of your car. In simpler terms, Return to Invoice cover offers the on-road value of your car when it is stolen or undergoes irreparable damage.

Return to Invoice (RTI) Cost and how it is calculated?

Return to Invoice in a car insurance policy is an add-on coverage that one can opt for, along with comprehensive car insurance plans. The RTI premiums may vary depending on the insurance provider, car age, and model. Usually, an RTI premium costs 10 percent more than the premium for comprehensive car insurance plans without an RTI add-on.

RTI amount is calculated after considering and comparing;

  • Vehicle invoice value, including ex-showroom price, registration charges, and road tax. And;
  • The vehicle’s replacement cost factoring the ex-showroom price, registration charges, and road tax.

The lower amount between the two will be sanctioned, as the RTI claim value.

How to apply for a Return to Invoice (RTI) claim?

Follow the steps given below to settle your RTI car insurance claims-

  • In case your car is stolen, contact your insurance provider with a stamped copy of the FIR stating that the police is unable to trace the vehicle.
  • In cases where the car gets completely damaged, policyholders are required to provide some sort of clear indication from a network/authorized garage stating that your car is beyond repair.
  • Policyholders are required to submit insurance and vehicle-related documents, along with a copy of an FIR on the insurance provider’s web portal or by visiting the office.
  • After completing the verification process, the car insurance claim against RTI will be settled.

What is covered in Return to Invoice (RTI) Insurance?

The RTI insurance cover claim can only be applicable;

  • If you are living in a theft-prone area.
  • If you do not have access to a secured parking spot.
  • If you are staying in a disaster-prone area that causes damage to your vehicle.
  • If you are not financially secure and cannot bear replacement or repair costs.

What is not covered in Return to Invoice (RTI) Insurance?

You cannot be eligible for an RTI insurance claim if;

  • There are minor dents or damages to the car caused due to an accident.
  • There is third-party damage liability. The RTI add-on only covers the car’s own damages.
  • If your car is more than three or five years old.
  • If you failed to file an FIR when your car is stolen.

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