Return To Invoice Add-On In Two Wheeler Insurance

Purchasing third-party bike insurance is mandatory in India. However, to get cover for your own damages you have to purchase a comprehensive bike insurance plan. Insurance companies also provide add-ons to enhance your coverage and you can only purchase them when you are covered with a comprehensive insurance plan. Return to invoice is one such add-on that can be beneficial for you in case of theft or total loss.

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Significance of Return To Invoice (RTI)

Return to invoice is an add-on cover offered by the insurance companies. The insurance companies provide bike insurance cover based on the market price less depreciation that is known as the Insured Declared Value. However, the IDV is less than the invoice amount of the bike including the registration charges and road tax charges as well.

Since the standard bike insurance plans, comprehensive plans or own damage plans provide cover for loss and damage caused due to fire, riot, natural calamity, road accidents, etc. Return to Invoice add-on provides cover in case of theft or total loss (when the bike is beyond repair/more than 70% damage). RTI provides cover for the invoice amount that you paid at the time of purchasing the bike.

Advantages of Return To Invoice (RTI)

Return to invoice add-on cover has its own advantages. However, you will have to pay an extra amount on your current premium. Here are some of those advantages:

  • With this add-on cover, you can get the cover equal to the on-road price of your bike if the bike gets stolen or beyond repair.
  • In case of accident, earthquakes, fire, floods, riots, etc. leading to a total loss of the bike, return to invoice cover pays for the invoice amount.
  • Return to invoice also provides cover for the road tax amount as well as the registration charges paid for the bike at the time of purchasing the bike.
  • It is especially beneficial for the new bike owners because, in case of a total loss, the owner can purchase the bike at a similar price range.
  • You can keep your peace of mind knowing that your bike is covered in case of total loss.

When Is Return To Invoice (RTI) Not Applicable?

Since it is important to know when the insurance company will provide you cover under RTI, it is equally important to know, when the insurance company will not provide cover under RTI. Here are the reasons for which the insurance company does not provide cover:

  • In case the bike gets recovered within the 90 days of theft.
  • If the local police station has not issued the First Information Report.
  • In case of loss or damage caused to any added accessories, lights, etc.
  • If you are found riding the bike without a valid driving license.
  • If you are found riding the bike under the influence of alcohol or drugs.
  • If the bike is found being used for illegal activity.
  • In case the bike is being used for commercial purposes when it was insured for personal usage.

This Is How Return To Invoice (RTI) Is Calculated

When you purchase a bike, it includes the ex-showroom price, registration charges and road tax. When it comes down to raising a claim and getting the cover, the insurance company only provides cover based on an Insured declared value and the approximate current value of the bike.

In case of return to invoice add-on cover, the insurer provides cover for the same amount you spend while purchasing the bike in the first place. It practically bridges the gap between IDV and the Invoice price of the bike.

Who Should Opt For Return To Invoice (RTI) Add-on?

It totally depends on your requirement, whether you want to purchase this add-on or not. Here are the ones who should consider purchasing this add-on:

  • The ones who live in a theft-prone locality.
  • The ones who have recently purchased a bike.
  • The ones who do not have a parking spot inside the house and park their bike outside or at an unsafe place.
  • The ones who usually ride through an accident-prone area.
  • The ones who love their bike.

Comparing Return To Invoice (RTI) & Zero-Depreciation Cover

The zero-depreciation cover for a bike is an add-on however, it provides cover on the ex-showroom price of the bike if you have chosen the insured declared value as per the ex-showroom price of your bike. Whereas the RTI add-on provides cover for the on-road price of the bike including the registration charges and road tax charges.

Conclusion

When you purchase a bike, it becomes your responsibility to protect it from any unforeseen damages. Even if you are covered under a comprehensive insurance plan that provides you cover for the loss or damage caused due to fire, theft, natural calamity, etc. but the coverage is based on the insured declared value on the market value of the bike but if you have purchased the RTI add-on cover, you will get the exact coverage amount you paid at the time of purchasing the bike only in the case of total loss. You can purchase this add-on online as well as offline. You just have to pay an extra amount on your premium.

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