Return to Invoice Cover

If you are looking for Return to Invoice in car insurance meaning, we are here to explain how this add-on works and other important features. Return to Invoice in car insurance means it is an add-on cover that allows you to receive the car's invoice value without any deduction. You can receive compensation from the insurer for the total loss of a car, that is, when it is beyond repair or when a car is stolen.

When you buy a comprehensive car insurance policy, you get coverage for third-party liabilities and damages to your car due to an accident, man-made disaster, natural calamity, fire, collision or theft.

For example, if the insured car is stolen and the police declare it non-traceable, then you can file a claim with the insurance company. As per the usual terms of a comprehensive four-wheeler insurance plan, the insurer pays the sum insured as compensation in such cases. However, the claim amount is calculated after depreciation is deducted.

If you have purchased the Return to Invoice in car insurance add-on, you can claim the full invoice amount for your vehicle.

Expands Coverage

RTI offers additional policy protection with the standard coverage. This add-on compensates you if your vehicle is stolen or damaged beyond repair.

Covers Depreciation

The car’s value drops as soon as it leaves the showroom. RTI offsets this depreciation and pays the full invoice value of your car. This includes registration and road tax.

Ideal for New or Premium Cars

RTI is ideal for brand-new or luxury cars. For these cars, even a small depreciation can lead to big financial losses.

Beneficial in Case of Total Loss

If your car is severely damaged, the repair costs exceed its resale value, it is considered a total loss. In such situations, RTI covers the complete invoice amount.

Loan Repayment Help

If you have an outstanding loan on your car, RTI helps you repay the balance by providing the full invoice value, reducing the financial strain.

Customisable Coverage

RTI can be easily added to your standard car insurance policy, making it an ideal upgrade to increase your vehicle's protection.

No Hidden Costs

The reimbursement includes not only the car's value but also additional costs like taxes, providing complete compensation.

Also Read: Add-on Covers in Car Insurance - Complete Guide

Car Insurance online offers financial protection in the event of a claim based on IDV and the current market value of your vehicle. In the event of a total loss or theft, you will receive the claim amount based on the plan’s IDV.

However, if you opt for RTI add-on cover while buying our car insurance plan, you will receive the full invoice value in the same event. This add-on ensures complete reimbursement, including road tax and registration fees, in case of total loss or theft. With the RTI cover, you get the following claim settlement:

Claim Amount (with RTI) = Ex-showroom price + Registration Charges + Road Tax
Here is how it works:

Imagine your car’s purchase price was ₹10 lakhs. After two years, its IDV depreciates to ₹7.5 lakhs. A standard policy would reimburse ₹7.5 lakhs for total damage. However, with RTI, the insurer compensates ₹10 lakhs—the invoice price.

There are several situations in which a car may be deemed a total loss. Common causes include:

• Severe damage has been caused due to a car explosion caused by fire.
• An accident with a larger vehicle can cause a total loss.
• Large rocks, trees, and debris have crushed the vehicle and damaged it beyond repair.

This is when you can make a claim against the RTI in a car insurance policy. Without this cover, you will only get the IDV of the car in a total loss or theft situation.

For standard car insurance claims, the IRDAI sets depreciation rates based on the vehicle's age. Here are the current rates:

Note that you must submit a final investigation report in case you are claiming your car insurance for theft.

When is Return-to-Invoice (RTI) Car Insurance Applicable?

When is RTI Car Insurance Not Applicable?

• Owners of Luxury or High-Performance Vehicles: Car insurance return to invoice protects against substantial financial losses from the steep depreciation of premium cars.
• New Vehicle Owners: This is Ideal for those who have just purchased a new car, offering full protection during the initial years when depreciation is highest.
• First-Time Buyers: Provides extra assurance and complete financial coverage for those unfamiliar with vehicle ownership risks.
• Residents in High-Risk Areas: Individuals living in locations prone to theft, flooding, or frequent accidents must have this insurance.
• Financed Vehicle Owners: If you have an ongoing car loan, it is ideal to use this option, as it relieves the loan repayment stress in such an event.

The car insurance invoice cover is an optional add-on. Since it extends coverage beyond the base policy, it incurs an additional cost. The premium for RTI depends on several factors, including:

• Newer cars typically attract higher add-on premiums.
• Premiums vary based on the car's brand, model, and market value.
• Vehicles registered in high-risk or metropolitan areas may incur higher costs.
• Since add-on covers are calculated as a percentage of your base premium, a higher base premium increases the RTI add-on cost.
• Including additional covers can affect the RTI premium.
• A Higher IDV generally results in a higher add-on premium.

To get an accurate estimate, you can use our online car insurance premium calculator.

RTI add-on cover plays a significant role in ensuring extensive financial security for car owners. By opting for this add-on, you ensure that you recover from a total loss of your vehicle without the financial burden. Since standard insurance plans do not offer such extensive coverage, a theft or total loss can result in a reduced claim amount.

To understand how RTI cover impacts and benefits car owners, let us take a look at the following example:

Let us assume that Aditi purchased a brand new Hyundai Electric Creta for around ₹20 lakhs. She lives in a flood-prone area that frequently experiences severe flooding. One such incident resulted in her car being swept away within just two years of purchase. All efforts to locate it proved futile. Losing a hefty investment can be a significant financial loss.

Let us look at the claim amount she would receive under a standard car insurance policy and under RTI insurance cover in this situation.

This illustrates the significant impact of RTI in recovering financial losses from theft or total loss. With RTI insurance, you are protected against financial loss, as you are eligible to receive the full invoice amount in the event of total loss or theft of the insured vehicle.

• Vehicle Age: This add-on is available for new cars or vehicles up to 3–5 years old. It is especially beneficial for luxury or high-value cars to safeguard significant investments.
• Applicability: The RTI cover applies only when your car is stolen or declared a total loss after an accident. Minor or repairable damages are not covered.
• Full Reimbursement: Unlike standard IDV-based claims, RTI ignores depreciation, ensuring you receive the full invoice value of your car.
• Exclusions: RTI does not cover accessories (electrical or non-electrical) or imported vehicles.
• Additional Premium: RTI comes at an extra cost, so weigh the premium against the benefits before adding it to your policy.
• Standard Claims Without RTI: Without this add-on, you would only receive the IDV, which accounts for depreciation.

Also Read: 5 Important Tips for a Car Insurance Beginner

Also Read: Zero Depreciation Car Insurance

Step 1: Enter Your Vehicle Details

Visit the official TATA AIG website, click the “renewal ” tab and select “car”. For a new policy or renewal, enter your car’s registration number to start the process. You will get a preliminary price.

Step 2: Fill in Required Information

Provide all necessary vehicle and personal details and select the Comprehensive Policy, including RTI cover and any other add-ons you want.

Step 3: Get Your Quote and Make Payment

Receive an instant insurance premium quote. If you are satisfied with the coverage and cost, proceed to pay the premium online securely. Your policy documents will be emailed to you after you complete the payment.

Zero Depreciation Cover

This is one of the smartest add-ons you can choose. It ensures you receive the full claim amount, with no depreciation deduction for replaced parts. So, when your car is repaired, you get the maximum value without worrying about hidden costs.

Medical Expenses Cover

This reimburses medical costs for the driver and passengers injured in an accident.

Engine Secure Cover

Your car’s engine is its heart, and this add-on keeps it protected. It covers damage to the engine, gearbox, or transmission due to waterlogging or oil leakage. This is helpful during heavy rains or floods.

Roadside Assistance Cover

With 24x7 roadside help, you can get towing, fuel delivery, battery jump-starts, or tyre repairs anytime, anywhere.

Consumables Expenses Cover

This cover reimburses the cost of consumables, such as engine oil, lubricants and filters, used during authorised repairs. It can lower your overall repair bill.

RTI cover is an optional add-on, but it acts as a smart decision for every new car owner. By paying the gap between the insured declared value (IDV) and the actual invoice cost, you are fully compensated for your investment. Since depreciation starts the moment your car leaves the showroom, RTI is a lifesaver against these unforeseen losses.

Choosing the right insurer is also important, and TATA AIG distinguishes itself with reliability and trust. Our comprehensive car insurance policy offers a range of add-ons, including Return-to-Invoice cover to provide maximum protection. You can get an instant quote for your car insurance policy online and customise your coverage by adding suitable add-ons for enhanced protection.

The car policy from TATA AIG can protect your vehicle against theft, accidents and total loss. Explore our RTI add-on today with our comprehensive car insurance and take advantage of complete protection, easy claims and reliable support anytime, anywhere.