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Return To Invoice (RTI) Add-on in Car Insurance Explained
For some people, their car is like their baby! They’re constantly looking after it, nurturing it and protecting it from all potential dangers. However, we all know that sometimes, no matter what- unfortunate incidents happen and for all those moments, there’s a car insurance that’ll have your back! But what if the vehicle is a total loss, or worse- stolen away?
If you gasped (even if a bit) at the thought of that, a Return to Invoice cover is something you should learn more about and we’ll be there to take you on that journey!
What is Return to Invoice in Car Insurance?
Return to Invoice cover is an add-on cover in car insurance offered in a comprehensive car insurance plan. The same allows the insured customer to receive full compensation, i.e. the last complete invoice value of their car, in case it has been stolen or total loss.
If your car suffers theft or damage beyond repair, don’t fret as Return to Invoice in car insurance will financially have your back in such a situation!
It will give you the benefit of getting back the complete amount of your car's invoice value, including the cost of registering a new vehicle and its road tax respectively.
A Return to Invoice cover is an exclusive add-on cover in car insurance offered along with Private Car Package policy or Private Car Standalone Own Damage Policy.
What is Return to Invoice Cover Meaning?
Return to Invoice means an add-on cover in car insurance that returns you the full invoice value of your car in case of total loss or theft. This means the insurance company will pay you the amount you originally paid for the car, including registration charges and road tax.
What is RTI Insurance Full Form?
RTI insurance full form is Return to Invoice. This add-on cover ensures that in case of total loss or theft of your car.
RTI is Available for Which Type of Cars?
At Digit, the Return to Invoice cover in car insurance is applicable to cars up to 3 years old. However, RTI is not available for second hand or used cars.
How does Return to Invoice Cover Work?
In a normal car insurance cover, the maximum amount of claim you can get is restricted to the IDV of the car. Return To Invoice is an add-on option which covers the gap between the Insured Declared Value (IDV) and the invoice value of the car. For context, the IDV is lesser than the invoice value of your car because of depreciation that happens over years. Sounds like Greek and Latin to you?
Basically, the coolest thing about this add-on is that it fetches you the on-road price of the car; the price you’ve paid for your car and doesn’t account for any depreciation! And perhaps this can almost make you feel good about your car if it is stolen or in case of total loss. (Well, we did say “almost”! 🙁)
What are the Benefits of RTI in Car Insurance?
Return to Invoice in car insurance offers several benefits such as:
Enhanced Coverage
RTI in insurance enhances the scope of your insurance coverage, by backing you up financially in unprecedented situations, thus, promising more comprehensive protection.
Full Compensation
Return to Invoice insurance means you get back the full invoice value of your car in case of theft or total damage. Thus, having RTI cover can help you significantly.
Beneficial in High-Risk Areas
If you live in a highly crowded city more prone to accidents, or an area prone to theft or natural disasters, RTI is your best bet!
Peace of Mind
Knowing that you will be compensated for the full value of your car with RTI cover will give you peace of mind while driving.
What’s Covered in Return to Invoice Cover?
Total Loss
RTI will cover the full invoice value of your car in case it suffers from total loss, implying that your car is damaged beyond repair due to an accident.
Theft
Return to Invoice in car insurance will also compensate the complete car invoice value, including registration fees and road taxes, if your car is stolen and not recovered.
What’s Not Covered?
Repairable Damage
Return to Invoice cover does not cover small dents or minor damages, which can be repaired.
Third-Party Liability
RTI is not applicable if you only have a third-party car insurance policy. It is available with comprehensive and own damage insurance policies.
Older Cars
RTI is typically available for new cars up to 3 years old, so it may not cover older cars.
Which Add-ons to Buy with Return to Invoice Cover?
Along with opting for Return to Invoice car insurance cover, you can also buy the following add-ons to enhance your insurance coverage:
New car owners with Return to Invoice cover can also opt for the consumable cover add-on as it provides an extra layer of protection by covering the costs of essential items like engine oils, screws, nuts and bolts, grease, and more in the event of an accident.
Getting the roadside assistance add-on along with RTI cover will ensure that you and your car are safe in case of any breakdowns.
Zero depreciation cover is more suitable for older cars, as with this add-on the cost of depreciation is not calculated, and you get the full value of repairs, costs and replacements during a claim.
What’s great about a Return to Invoice Cover?
A Return to Invoice cover is best suited, to protect and compensate you in case your vehicle is stolen or damaged beyond repair.
You should opt for a Return to Invoice cover if you stay in a city or area that is prone to thefts. This way, your motor insurance plan will provide you complete protection in any possible case.
Generally, when you make a claim in any type of motor insurance, the amount you’re compensated for also accounts for your vehicle's depreciation too. However, if one has opted for this add-on cover in the plan, no depreciation would be accounted for and you will only get compensation based on the last invoice value of your vehicle.
What is the Role of Digit in Return to Invoice Cover?
We know that the add-on cover already sounds pretty cool and you would ideally like to know what Digit offers as part of our Return to Invoice cover. We shall pay the cost of a new vehicle of the same or equivalent make, model, features, specification of the Insured Vehicle subject to the price mentioned in the invoice of the insured vehicle.
If the exact same make, model, variant is discontinued, we shall compensate with the last available invoice price of the insured vehicle immediately before discontinuation.
Not only do we reimburse the first-time registration charges of the new vehicle, but we also reimburse the road tax.
We believe it’s better to be safe than sorry and even provide you with an insurance policy to cover the Vehicle, which includes Own Damage Cover, Third Party Liability Cover and other add-on covers.
While the Zero Depreciation Add-on cover also sounds like it’s got your back, it only pays you back the ex-showroom price, but the Return to Invoice add-on cover also covers road tax, insurance policy cost and registration charges you had paid.
Be the superhero your car needs and protect it all the way. You know what they say, go the extra mile for your car and it’ll go many extra miles for you!
When is Return to Invoice Cover Applicable?
Return to Invoice is NOT an option you can claim to compensate for small blemishes and repair bills, like the last dent in your car or the crack on your windshield.
In fact, partial loss can be handled through Own Damage Cover and other add-ons like Zero Depreciation, whereas Return to Invoice helps you recover financial losses that arise because of a stolen car, or a car damaged beyond repair i.e., when you’ve suffered a Total loss of your car.
Therefore, RTI add-on comes into effect only in case your car is stolen or suffers from total loss, meaning that your car is beyond replacement or repair.
Also, depending upon your insurer, the Return to Invoice cover in car insurance is generally applicable to cars 3 to 5 years old.
When is Return to Invoice Cover Not Applicable?
The Return to Invoice Cover is not applicable in the following situations:
If your vehicle is damaged, but only to an extent where it can still be repaired.
If you claim that your vehicle is stolen, but don’t have an FIR or police complaint towards the same to confirm the same. You will need to support your claim with relevant documents.
How to Calculate RTI in Car Insurance?
When you buy a car, you will be paying for the ‘on-road’ price which includes the ex-showroom price plus the road tax, and then to top it off, the insurance cost, registration charges depending on the class / make of the car. Phew! After all those payments, when your car is totaled, you get back a lesser amount than what you initially paid based on your IDV! We agree, it’s pretty unfair.
This is why, with this Return to Invoice add-on cover, your IDV is the same as the ‘On-Road’ price (a.k.a. the total of all those additional things you paid).
Simply put, to calculate RTI at the time of claim when your car is stolen or damaged beyond repair, refer to your car’s invoice. It is the amount you’ll receive against RTI add-on.
How Much Does Return to Invoice Cost?
Return to Invoice cover is an add-on available with comprehensive and own damage car insurance policies at an additional nominal amount, which is usually 10% more.
For example, you bought a car for ₹15 lakh. You got a comprehensive car insurance policy with premium ₹5000. Now if you purchased the RTI add-on, it would cost an additional 10%, taking your total premium to ₹5500.
What is the Validity of Return to Invoice in Car Insurance?
Generally, the validity of any add-on is equal to the validity of the insurance plan chosen. Thus, RTI in car insurance is approximately valid for one year. However, depending on the policy and insurer, you can increase or decrease the validity of the policy as well.
Example of RTI in Car Insurance
Here is an example of RTI in insurance to understand better what Return to Invoice cover means in car insurance:
You purchased a new sedan for ₹10 lakhs, including all taxes and registration fees. After two years, your car is involved in a severe accident and is declared a total loss. Now, here are two situations that can occur at the time of claim:
| Case 1: With RTI Cover | Case 2: Without RTI Cover |
| Consider you opted for the Return to Invoice cover. | Consider you don’t have the Return to Invoice cover along with the car insurance policy. |
| With RTI cover, you would receive the full ₹10 lakhs, which is the invoice amount, allowing you to replace your car without any financial burden. | Typically, without RTI cover, your car insurance policy would pay the current Insured Declared Value (IDV) at the time of claim, which might be around ₹6 lakhs considering depreciation. |
| You did not suffer any financial loss. | You suffered a loss of ₹4 lakhs. |
So, What’s Great About Return to Invoice Cover?
Let’s just say that a return to invoice cover is like that one friend, who’ll always be there for you except that it does drift away as time, and years pass by.
A Return to Invoice cover is best suited, to protect and compensate you in case your vehicle is stolen or damaged beyond repair.
You should opt for a Return to Invoice cover if you stay in a city or area that is prone to thefts. This way, your motor insurance plan will provide you complete protection in any possible case.
Generally, when you make a claim in any type of motor insurance, the amount you’re compensated for also accounts for your vehicle's depreciation too. However, if one has opted for this add-on cover in the plan, no depreciation would be accounted for and you will only get compensation based on the last invoice value of your vehicle.
Who Should Opt for RTI Cover in Car Insurance?
Return to Invoice cover in car insurance is an add-on that offers extra coverage. So, here are group of people that can benefit more from RTI add-on:
New Car Owners
RTI is the best add-on for new car owners as it is typically available for cars that are less than 3 to 5 years old.
People Living in Risky Areas
RTI in car insurance returns you the full invoice amount if the car is stolen or suffers from total loss. Therefore, people living in accident-prone or high theft areas should get this add-on.
Frequent Travelers
If you drive your car frequently, it is at a higher risk of accidents, and in such cases RTI can be very helpful.
How to File RTI Car Insurance Claim with Digit App?
To know how to file claim for RTI in insurance for car, follow these steps:
Step 1
Download the Digit app and go to ‘File Motor Claim’ option.
Step 2
Provide all the required details related to accident and damage.
Step 3
Enter your personal details and click on ‘Register Claim’ button.
Step 4
That's it! Your claim has been registered successfully, and you will receive the next steps on your email and WhatsApp.
Which is Better: Return to Invoice vs Zero Depreciation Cover?
Policyholders might often get confused between RTI and Zero Dep add-ons. So, to clarify, here are some key differences between Return to Invoice vs Zero Depreciation that you should be aware of.
| Parameter | RTI (Return to Invoice) | Zero Depreciation |
| Suitable for | New car owners, car theft or total loss, people living in accident prone areas. | Old car owners, luxury car owners or expensive spare parts, new drivers, people who don’t want small dents on cars. |
| Benefit | Returns full invoice value of the car in case of total loss or theft. | Ensures you get full claim amount without deducting depreciation on parts. |
| Coverage | Provides coverage when the car is beyond repair (total loss) or stolen and not recovered. | Covers partial damage and repairs due to accidents, without considering the depreciation of different car parts. |
| Eligibility | Typically, available for new cars up to 5 years old. | Available for even older cars and is not just limited to new cars. |
Return to Invoice vs IDV (Insured Declared Value)
Here is the difference between Return to Invoice vs IDV in car insurance:
| Parameter | RTI in Car Insurance | IDV in Car Insurance |
| Meaning | Return to Invoice means an add-on cover in car insurance that pays the invoice value of your car in case of total loss or theft. | IDV is the current market value of the car, and the maximum amount payable in case of total loss or theft of your car. |
| Availability | RTI is an add-on cover and is NOT already covered in the standard car insurance plan. | IDV is already included in the standard car insurance plan. |
| Benefit | Provides financial protection by ensuring you receive the original amount of the car as in your invoice in case of total loss or theft. | It helps determine the maximum claim amount you will receive based on the approximate market value of the car in case of total loss or theft. |
| Premium | You need to pay an additional nominal premium to buy RTI cover, which is generally 10% more than the standard car insurance policy. | IDV is already Included in the standard car insurance policy premium, so you need not pay anything extra. |
| Applicability | Generally applicable for new cars for up to 5 years from the date of purchase, depending on the insurer. | Applicable for all cars and is determined at the time of policy purchase and |
| Renewal | It is valid for a year, so RTI coverage needs to be renewed annually along with the standard insurance plan. | Renewal is based on the car's age, make, model, and approximate market value, and it does not require any additional premium. |
Things to Keep in Mind When Buying RTI Cover
When buying Return to Invoice in car insurance, here are some important points to keep in mind:
Return to Invoice cover is typically available for new cars up to 3 years old, so if you own an older car, you might not be able to purchase this add-on.
RTI cover in insurance covers your car only in situations of total loss and theft; other minor damage or repairs are not covered.
Since RTI is a car insurance add-on, opting for RTI in insurance will increase your standard car insurance premium by around 10%.
Remember that you will need to renew RTI cover annually along with your comprehensive or own damage car insurance policy.
Explain it like I'm five
We're making insurance so simple, now even 5-year-olds can understand it.
A dad has promised his kid a pizza, and they visit a pizza shop to buy him one. The kid selects one for Rs.300, but then goes on to add extra toppings which increases the price to Rs.450. The child eats two slices and gets the rest packed to take home. As the child rushes out in a hurry to meet his dad, the pizza falls from his hand. He’s very disappointed. His dad agrees to buy another pizza for him,and gives him the full Rs.450 instead of Rs.300, so that the kid can buy the entire pizza with his favourite toppings all over again. The dad just Returned to Invoice (RTI) with the pizza.
FAQs about Return to Invoice Cover in Car Insurance
Is RTI available for new cars?
Yes, Return to Invoice (RTI) add-on is available for new cars for up to 3-year-old cars, depending upon your insurer.
Who should buy RTI add-on cover in car insurance?
New car owners and people who live in accident-prone areas are recommended to get Return to Invoice add-on cover.
Does RTI cover my car in every situation?
No, RTI add-on provides coverage only if your car is damaged beyond repair or stolen and cannot be recovered.
Will I get the full claim amount under RTI?
Generally, depreciation amount is deducted so it may not be possible to get the full amount refunded at the time of claim; however, it will depend upon your insurer and your policy details. So, contact your insurance company beforehand.
Is it possible to buy Return to Invoice add-on cover for a 5-year-old car?
No, generally Return to Invoice add-on cover is available for cars up to 3 years old; however, depending on your insurance you can get RTI for 5-year-old car only after the assessment of your car by the company.
Should I buy the RTI Add-on if I own an expensive car that is 7 years old?
No, generally, RTI add-on is not provided for cars older than 3 or 5 years. So, you will have to confirm the same with your insurer.
How is the Return to Invoice cover different from Zero Depreciation cover?
The primary difference between the two is that a Return to Invoice cover is mainly used when your vehicle is either stolen or damaged beyond repair, whereas a Zero Depreciation cover is applicable for other cases such as for partial repairs and own damages of your vehicle.
When can I buy the RTI Add-on?
You can buy the Return to Invoice add-on when you are buying a new car insurance policy and also at the time of car insurance renewal.
Is RTI cover only applicable for the total damage of the vehicle?
RTI cover is also applicable for theft of the vehicle.
Are minor damages covered under RTI?
No, Return to Invoice does not include any kind of minor damage to your car.
Are additional accessories covered under RTI?
No, you can file a claim only against the invoice value of the car under RTI add-on.
Are other add-ons available with Return to Invoice cover?
Yes, you can buy various other add-ons available with car insurance as you require.
Will I get the on-road price against RTI if my car is damaged beyond repair?
Yes, you can claim for the on-road price of your car against your Return to Invoice add-on.
What would happen if my car got stolen and is not recoverable?
If you have RTI cover in car insurance, then you can raise a claim against the RTI coverage and you will receive the invoice amount as claim. For that you have to inform your car insurance provider about the car theft as soon as possible.