Return To Invoice Cover (RTI) in Bike 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
- 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.
- 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.
- 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.
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 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.
Add-on Covers For Your Bike Insurance Policy
Like other assets, the value of your two wheeler also depreciates constantly with time and the liability of this expense by default rests with the policyholder. A zero depreciation add-on protects you against the depreciation expenses incurred by your bike. Thus, if you opt for a zero depreciation cover, depreciation expense of your bike is not deducted from your claim amount at the time of a claim settlement. This add-on is available with comprehensive bike insurance plans as well as standalone bike insurance plans. This is one of the most popular and recommended bike insurance add-on covers.
In case of total loss (more than 70% damage) or theft of your bike, the insurance company pays you the Insured Declared Value of your bike as compensation. However, this Insured Declared Value (IDV) is less than the invoice price which you pay at the time of purchasing your bike. The Invoice Protection add-on cover helps you claim the Invoice Price, i.e. total ex-showroom price of your bike plus taxes plus registration charges, of your bike in case of total loss or theft of your bike.
No Claim Bonus is the reward which is given to the policyholder for not making any claim during the policy period. This reward is offered by the insurer in the form of a discount on the own-damage premium of the bike insurance policy at the time of policy renewal. The NCB ranges from 20% to 50% of the own-damage premium depending on the number of claim-free years. However, if you make even a single claim during the policy period this NCB gets lost. But, with the NCB Cover, you can keep your NCB intact even after making a claim during the policy period.
The damages incurred by the engine of the two wheeler are by default not covered under a bike insurance policy. However, if you opt for an Engine Protection Cover, the insurer will be liable to compensate you for damages incurred by the engine of your bike such as damage due to leakage of lubricants, water ingress, hydrostatic lock, damaged gearbox, broken crankshafts or pistons and cylinders. The repair cost of the internal engine parts is often high and can sum up to thousands of rupees or more. Thus, addition of this add-on to your comprehensive or standalone 2 wheeler insurance policy can save you from these expenses.
Bike Companies User Reviews
Return To Invoice Cover (RTI) in Bike Insurance FAQ
Can I opt for a Return To Invoice add-on with a third party bike insurance plan?
No. The Return To Invoice (Invoice Protection) add-on is not available with a third party bike insurance plan.
Can I add other add-ons also along with the Return To Invoice cover to my bike insurance plan?
Yes, you can add as many add-ons as you wish with the Return To Invoice cover to your standard comprehensive or standalone own-damage bike insurance plan.
Can I use my Return To Invoice cover in case of minor damages?
No, the Return To Invoice cover is applicable only in case of total case i.e. when the cost of repair is more than 70% of the IDV.
When can I opt for the Return To Invoice cover?
You can opt for the Return To Invoice cover either at the time of policy purchase or its renewal.
Will the Return To Invoice cover compensate for the road tax paid by me at the time of purchase of my bike?
Yes, the Return To Invoice cover will provide a compensation amount equivalent to the amount mentioned in the invoice which includes bike registration charges and applicable taxes.
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