Return To Invoice Cover (RTI) in Two Wheeler Insurance

Return To Invoice Cover - A standard bike insurance plan, be it a comprehensive plan or a standalone own-damage plan, provides you an insurance coverage for the own-damages sustained by your bike in case of mishaps such as road accidents, natural/man-made calamities, fire, theft, riots, etc.

In case of constructive total loss, i.e, when the insured’s bike is damaged beyond repair (more than 70% damage) or when the insured’s bike gets stolen, the insurer offers Insured Declared Value (IDV) of the bike as compensation. IDV refers to the market price of the insured’s bike less depreciation.

However, this IDV is lesser than the invoice amount which the policyholder had actually paid at the time of purchasing the bike. The invoice price includes registration charges as well as road tax charges in addition to the selling price of the bike.

When you opt for a Return To Invoice (RTI) bike insurance add-on cover, you can bridge the gap between the IDV and the invoice price. Return To Invoice cover, also known as Invoice Protection Cover, helps you to receive the invoice price and not the IDV as the claim amount. With this add-on clubbed with a comprehensive or standalone own-damage bike insurance plan, you can receive an amount equivalent to the on-road price of your bike in the case of total loss or theft.

Features of Return To Invoice Cover

1. Like all other bike insurance add-on covers, Return to Invoice cover is available with comprehensive bike insurance plans and standalone own-damage bike insurance plans.
2. This add-on costs around 10% more than standard comprehensive and standalone own-damage policy but helps the policyholder get registration charges, depreciation amount as well as road tax charges in addition to the selling price of the bike in case of total loss or theft.
3. This add-on is applicable only if the insured’s bike is extremely damaged and is not in a usable condition. It is not applicable in case of minor damages.

Benefits of Return to Invoice Cover

Return to Invoice cover is offered by the insurance company to the policyholder in order to bridge the gap between the two-wheeler’s invoice value and its IDV or Insured Declared Value. In case you avail RTI Cover, then you are eligible to get reimbursement for the total loss incurred i.e. the showroom price paid for the bike, in case the bike gets stolen.

Some of the benefits of Return to Invoice cover in two-wheeler insurance are as follows:

• Return to Invoice cover helps in enhancing the coverage of your two-wheeler insurance policy as it offers your bike better protection against theft or complete damage/ loss to your vehicle.
• It offers protection to you against losses incurred in the event when your insured two-wheeler gets stolen. This is due to the fact that as a benefit derived from RTI cover, the insurance company would compensate for your vehicle according to the last invoice value, without taking into account depreciation.
• If your insured bike gets damaged to a point where repair is not possible, then with the help of Return to Invoice cover, you can get the similar or same model of your bike, at the last invoice value of the insured vehicle.
• Return to Invoice cover is beneficial especially for the new bikes as it offers the owner with a much needed peace of mind that could get disturbed in case their bike gets stolen or damaged beyond repair.

Who Should Opt For Return To Invoice Cover?

Ideally, the Return To Invoice cover should be opted by all bike owner, however it is extremely important for the following people:

• People who have purchased a brand new two-wheeler/bike.
• People living in areas where bike theft is common.
• People who do not have secure parking spaces.
• People who travel for long distances regularly and are vulnerable to road accidents.
• People who own a bike, which is not more than three years old.