Zero Depreciation vs Return to Invoice

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Zero Depreciation vs Return to Invoice

The decision to safeguard your two-wheeler with a two-wheeler insurance plan is necessary. The primary reason is to enjoy a stress-free riding experience without the burden of unexpected accident-related financial losses.

Accidents can be unexpected or due to the carelessness of a third party. For the same reason, every two-wheeler owner has the flexibility to customise and purchase insurance for a two-wheeler solely based on requirements.

As per the Indian Government, third-party bike insurance is mandatory for all two-wheeler owners. However, you can choose between a comprehensive and own-damage insurance plan.

Most trusted insurance providers offer a range of add-on cover options under comprehensive two-wheeler insurance. The two popular riders are zero depreciation and return to invoice.

This blog will discuss zero depreciation and return to invoice in detail, along with the return to invoice vs zero depreciation points. .

What is Zero Depreciation in Bike Insurance?

When you buy any two-wheeler for ease of commute, based on usage and purchase year, the value of the two-wheeler or bike reduces over time. This reduced value is known as the depreciated value of a vehicle.

Other reasons taken into consideration to calculate the depreciation of any vehicle include the vehicle parts' wear and tear, the vehicle's current market value, etc. This depreciated value can directly reduce the claimable amount for the insured.

The zero depreciation cover or bumper-to-bumper insurance is an additional benefit most insurance providers offer. Under this cover, the insurer does not consider the depreciated value of your two-wheeler when determining the value of repair or replacement.

For example, Mr Satish met with an accident and broke some parts of his bike. His bike was 3 years old. He had purchased zero depreciation cover during his bike insurance renewal last year.

When he filed a claim settlement application with his insurance provider, he received total compensation for the repair and replacement cost incurred to fix the bike without the deduction of the depreciated value of the bike and its parts. This reduced the out-of-pocket expenses for Mr. Satish.

Important Points to Remember

The premium charged is higher due to additional cover protection.

It is only a beneficial add-on cover option for relatively new bikes or bikes under 5 years old.

Under this cover plan, claim settlement occurs after properly deducting voluntary and mandatory deductibles.

Most insurers limit the number of claims permitted yearly under this cover.

This add-on cover reduces the out-of-pocket expenses for the insured.

What is Return To Invoice in Bike Insurance?

Certain accidents or situations require more than just financial support from an insurer. Some examples include stolen bikes, loss of overall functionality, damage beyond repair, etc.

Insurance providers offer a return to invoice rider option to protect the insured in such situations. With the purchase of return to invoice in bike insurance, the insurer considers the Insured Declared Value or IDV of the bike and compensates for the same directly to the insured.

Simply put, if an accident leaves your bike in a condition beyond repair, you can claim settlement under RTI cover to receive financial support based on the IDV of your bike after deducting necessary deductibles and vehicle depreciation.

For example, Mr Rajat was travelling to Ajmer from Jaipur on his 2-year-old bike and parked his two-wheeler outside a rest stop to freshen up. Upon coming back, he noticed his bike was missing.

He informed the insurer about the stolen bike and filed for a claim. As he had purchased the return to invoice cover with his bike insurance plan, he received the correct value for his stolen bike based on IDV and purchase price during claim settlement.

Important Points to Remember

RTI rider benefit covers stolen or fully damaged bikes and rightly compensates the insured.

The premium charged is higher due to additional cover protection.

Return to invoice cover benefit is only available for a set period of a maximum of 3 years or less but can vary based on the choice of insurer.

RTI cover is more beneficial for relatively new bikes but can be expensive for older bikes.

The RTI cover can only be utilised if the bike repair and replacement costs exceed a set percentage of 75% of the IDV.

Differences Zero Depreciation vs Return To Invoice

Factors Zero Depreciation  Return to Invoice 
Main Function Zero depreciation cover allows easier claim settlement without considering the depreciated value of a bike. Return to invoice cover provides the insured with a lump-sum claim amount based on IDV in case the bike is stolen or damaged beyond repair. 
How Does it Work? Zero depreciation covers the gap between depreciated value and the cost of repairs. Return to invoice covers the gap between the bike's purchase price and IDV. 
Coverage Duration  Zero depreciation usually covers for up to 5 years.  Return to invoice extends cover for 3 years or less. 
Who is it For? Usually more beneficial for new bikes or bikes below the age of 5. Usually beneficial for new bikes or bikes below the age of 3.


Both the rider options mentioned above benefit the insured in different ways. Zero depreciation extends financial support to provide cover without considering the depreciated value of the bike.

Return to invoice extends financial support to compensate the insured for stolen bikes or damages to the bike beyond repair. It works by compensating the insured based on IDV and purchase price.

The decision between zero depreciation and return to invoice cover depends on different factors. These factors include budget constraints, the value and age of the bike or two-wheeler, area of residence, required coverage duration, etc.

The important thing to remember is to buy insurance for a 2-wheeler from a trusted insurance provider like Tata AIG. You can choose from different two-wheeler insurance plans with us and decide after comparing the insurance plans using our bike insurance calculator.

We are happy to assist you in ensuring your bike is protected with the right coverage for increased peace of mind. Buy one today!

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Can we add zero depreciation cover with own-damage bike insurance?

Can we add zero depreciation cover with own-damage bike insurance?


You can customise your standalone own-damage bike insurance plan with zero depreciation add-on cover. You can do so at the time of buying a new own damage insurance policy or at the time of renewal.

If third-party bike insurance is mandatory, why can’t I combine zero depreciation and RTI coverage to reduce total expenses on insurance premiums?


Third-party bike insurance does not offer zero depreciation and RTI add-ons for customisation. No riders can be combined with this policy except for personal accident cover, but it might not be available with all insurance providers.

Are all parts of the bike covered under zero depreciation?


Most of the essential parts of a bike are covered under zero depreciation cover. However, no coverage is extended for parts like tubes, batteries, regular wear and tear, and tyres.