Return to Invoice Cover Add-on in Car Insurance Policy

Return to Invoice Cover for Car Insurance

Standard comprehensive as well as standalone own-damage plan provides you an insurance coverage for the own-damages sustained by the insured’s car in an unfortunate event including road accidents, natural/man-made calamities, fire, theft, riots, etc. The amount of compensation depends on the Insured Declared Value (IDV) of the insured’s car mentioned in the car insurance policy document.

When the cost of repair of the insured’s car is more than 75% of the IDV, the damage is termed as total loss.In case of a total loss, the policyholder is entitled to receive the IDV amount as compensation. However, this IDV is lesser than the invoice amount which the policyholder had actually paid at the time of purchasing the car. The invoice price includes registration charges as well as road tax charges in addition to the selling price of the car.

However, by opting for a Return To Invoice (RTI) car insurance add-on cover, the policyholder can bridge the gap between the IDV and the invoice price. Return To Invoice cover, also known as Invoice Protection Cover, helps the policyholder to receive a claim amount equivalent to the cost of your car mentioned in its invoice. With this add-on clubbed with a comprehensive or standalone own-damage car insurance plan, the policyholder can receive an amount equivalent to the on-road price of the car in the case of total loss.

Features of Return To Invoice Cover

  1. Available with comprehensive car insurance plans and standalone own-damage plans.
  2. Costs around 10% more than standard comprehensive/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 car in case of total loss.
  3. It is applicable only if the insured’s car 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 car owner, however it is extremely important for the following people:

  1. People living in areas where car theft is common
  2. People do not have secure parking spaces
  3. People who travel for long distances regularly and are vulnerable to road accidents.

Car Insurance Add on Covers

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Add-ons For Your Car Insurance Policy

  • Zero Depreciation

    A car's value depreciates constantly with time. Thus, at the time of a claim settlement, the depreciated value of a car is deducted from the claim amount. However, by opting for a zero depreciation add-on you can shift the liability of the depreciation cost to the insurer and get the entire claim amount without any deduction of the depreciation sum. This add-on is generally available till the age of 5 years of car, however, the car age limit varies from insurer to insurer.

  • NCB Cover

    A No Claim Bonus (NCB) is a discount given by the insurer in the premium amount to a car insurance policy holder for not making a claim in the entire tenure of the four wheeler insurance policy. This discount is not available if the policy holder has made even a single claim. However, with the NCB cover, a policyholder will be entitled to receive an NCB discount despite having made a claim subject terms and conditions of insurance company. The NCB discount keeps on increasing with every claim-free year until it reaches 50%.

  • Engine Protection Cover

    A car's engine is by default not covered under either a comprehensive or a standalone own-damage car insurance policy. And therefore, if it gets damaged due water-logging or oil leakage, your insurance company is not liable to pay for its damages. But, if you opt for the add-on known as Engine Cover, you can get your car's engine insured by the insurer for damages incurred due to water ingression as well as leakage of lubricants. Engine Cover is one of the most popular car insurance add-ons and is available against the payment of a nominal premium.

  • Invoice Cover

    If you have a return to invoice cover added on to your comprehensive car insurance policy, you can claim the total ex-showroom price of your four wheeler, taxes and registration charges, in case of total loss. In case of total constructive loss (more than 70% of damage) or theft of your car, an insurance company pays the Insured Declared Value (IDV) of your car as compensation. However, this IDV is lesser than the actual amount paid by you at the time of purchasing your car. When you opt for the add-on called Return To Invoice Cover with your car insurance policy, the insurance company pays the total ex-showroom price of your car plus the taxes and registration charges incurred at the time of purchase, as the claim amount in case of total loss.

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Return to Invoice Cover for Car Insurance FAQ

  • Can I opt for a Return To Invoice add-on with a third party car insurance plan?

    No. Like all other car insurance add-ons, the Return To Invoice add-on is not available with a third party car insurance plan.

  • 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.

  • Can I add other add-ons also along with the Return To Invoice cover to my car insurance plan?

    Yes, you can add as many add-ons as you wish with the Return To Invoice cover to your standard comprehensive/standalone own-damage car insurance policy.

  • 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 75% of the IDV.

  • Will the Return To Invoice cover compensate for the road tax paid by me at the time of purchase of my car?

    Yes, the Return To Invoice cover will provide a compensation amount equivalent to the amount mentioned in the invoice which includes car registration charges and applicable taxes.

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