Car insurance plays a significant role as it covers the loss or damage caused to the insured car in an unforeseen event. In India, as per the Motor Vehicle Act, it is mandatory to obtain third-party insurance. However, it is not enough to cover all the risks. You can purchase a comprehensive car insurance policy to cover your own damages (OD) and third-party liabilities.
A comprehensive policy protects your insured vehicle if it is damaged in an accident, fire, theft, natural calamities, and man-made disasters.If your car is ever involved in an accident that causes damages or loss to the property or life of any third parties, it is covered in this policy.
Suppose the newly bought that you have parked near your house gets stolen. The next thing you will do is file an FIR. But the police are not able to find your car after conducting an investigation. What will you do next?
Well, this is when ‘Return to Invoice’ add-on cover comes into the picture. You can avail the benefits of this cover within three years from the date of buying the car.
Then the next question is 'do all car insurer provides replacement of the insured car in case of theft or total loss’? With the help of Return to Invoice Cover, you get the on-road value of the insured car, if it is stolen or damaged beyond repair. The car replacement depends upon the insurer.
However, insurers guarantee on giving the full invoice amount as compensation for the total loss or theft of the newly bought car. Ensure that you bought this cover with the comprehensive car insurance plan.
Your insurer will compensate for the below-mentioned values under your Return to Invoice cover-
This add-on cover is best suited for new car owners. Understanding that the brand new owners need compensation as per the invoiced amount in case of theft or total loss. A standard car insurance policy does not offer you as much security as this add-on cover provides.
An RTI Insurance cover does not compensate for any minor dents or grazing on the car body. Moreover, it only covers own damage (OD), if you have caused damage to third-party property, the RTO will not extend the coverage to the third party.
RTI does not entertain the damages if you have not submitted a copy of an FIR for the stolen car. Also, you can avail the benefits of RTI cover only for newly bought cars i.e. up to 3 years.
The price of the Return to Invoice cover depends on various factors, including the car model, variant, age of the car, IDV, etc. You can also visit the official website of the Policybazaar Insurance Brokers Limited and calculate the premium amount for the insurance cover with the help of an insurance premium calculator.
Generally, your standard car insurance policy would not be able to fetch the actual value of your car as the rate of depreciation is applied to the car from the day of the purchase. Therefore, you might lose quite a huge amount. With the help of a Return to Invoice add-on cover, your insurer pays the full value until the car reaches the age of 3 years.
If you are a brand new car owner, it is suggested to purchase the Return to Invoice add-on cover with your car insurance policy. However, the car replacement features vary from insurer to insurer. But this add-on cover will compensate the amount, whether your car has been damaged beyond repair (total loss) or stolen.
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