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What is Return to Invoice Add-on in Bike Insurance?

Updated On Mar 15, 2021

Return to Invoice add on cover is an option that the policyholder can purchase in order to fill in the gap between the Invoice value and the Insured Declared Value(IDV) of their bike alongside the depreciation charges, road tax charges and all the other applicable taxes. This add on cover helps you in getting the on road price of the two-wheeler in the event of complete loss or theft.

A standard two-wheeler insurance policy, be it a standalone own damage policy or a comprehensive two-wheeler insurance policy, offers the policyholder insurance coverage for the own damages that are endured by their vehicle in the event of unfortunate incidents such as natural calamities, road accidents, theft, fire, riots, etc.

If there is a complete loss or damage to your bike or if the bike of the policyholder gets stolen, then the Insured Declared Value of the vehicle is presented by the Bike insurance company as compensation. However, the Insured Declared Value is less than the amount on the invoice which had been actually paid by the policyholder while buying the bike. The invoice price includes road tax charges, registration charges along with the bike’s selling price.

When a policyholder chooses a Return to Invoice (RTI) add-on cover along with their basic bike insurance policy, they can then fill in the gap between the Invoice price and the Insured Declared Value. This add-on cover helps the policyholder in receiving the invoice price as the claim amount and not the IDV.

What is Return to Invoice Add-on in Bike Insurance?

When is Return to Invoice Cover Applicable?

Return to Invoice add-on cover is applicable only when your two-wheeler gets stolen or gets damaged beyond repair. RTI cover is not applicable in case your bike faces any small damages and needs repair. When the repair cost for your two-wheeler gets over 75% of the Insured Declared Value, it is said to be a complete loss.

This add-on cover is an optimum option for the policyholder if they are staying at an area where the theft of the two-wheeler is a common incident or there are high chances of getting involved in an accident. In the event of any mishap, with a standard bike insurance plan, they are eligible to receive the value(after deducting depreciation) which is mentioned in the policy.

However, with Return to Invoice add-on cover, the policyholder is eligible to receive the on road price of their vehicle. In addition to this, if the policyholder has decided to purchase a new bike, then they must consider buying Return to Invoice add on cover that will protect them financially in the event of serious road accidents or theft.

What are the Features of Return to Invoice Add-on Cover?

Highlighted below are the features of the Return to Invoice (RTI) add-on cover:

  • The policyholder just like any other two-wheeler insurance add-on covers can also avail Return to Invoice(RTI) add-on cover along with a standalone own damage two-wheeler insurance policy and Comprehensive two-wheeler insurance policy.
  • This add-on cover is applicable only in the event of complete damage of a policyholders bike. In case, the bike has sustained minor damages, Return to Invoice(RTI) add-on cover is not applicable.
  • Although, Return to Invoice(RTI) add on cover costs approximately around 10% more when compared to standalone own damage policy and comprehensive bike insurance plan, however, it helps the policyholder in getting registration charges, road tax charges and depreciation amount alongside the selling price of bike in the event of complete theft or loss.

Also, Read

Two Wheeler Insurance Comparison - Importance, Steps and More

IRDAI Guidelines For Bike Insurance Policies In India

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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