Return to Invoice Add-On Cover For Car Insurance

Car Insurance add-ons are additional coverage which give you extra financial protection against damages or loss incurred by your car due to an accident, theft, or any other mishap. You can get different add-ons by paying an extra amount for them. The add-ons are only available with standalone and comprehensive car insurance policies. Different add-ons offer different types of protection like the one which gives an invoice protection is known as Return To Invoice or Invoice Protection Cover.

What is Return To Invoice in Car Insurance?

The Return to Invoice (RTI) is an add-on cover, which is also known as Invoice Protection Cover. This add-on helps you receive a claim amount equivalent to the cost of your car mentioned in its invoice. It bridges the gap between the Insured Declared Value (IDV) and the Invoice value of the car. With this coverage, you can receive an amount equivalent to the on-road price that was finally paid by you to get the car in the case of constructive total loss.

This Return To Invoice add-on is applicable only if your car has sustained any major damage and is not in a usable condition. The Return To Invoice add-on is not applicable in case of small damages.

How Return To Invoice Add-On Cover Works in Car Insurance?

You can request a claim against your car insurance policy in several circumstances, which may range from a broken headlight to the theft of your car.

However, in situations, where your car becomes irrevocable due to the theft, fire or any other unfortunate event. In such cases, insurance companies pay an amount equivalent or up to the car’s insured declared value (IDV), which is lesser than the invoice value of your car, i.e., what you actually paid while purchasing it.

Here comes the return to invoice add-on cover, with which you become entitled to receive the invoice value of your car as compensation rather than the IDV, in the case of the total loss of the car. The invoice value that you would get includes the road tax and registration charges of your car in addition to its market price.

For instance, if you have a car that you purchased with an invoice value of Rs. 5.20 lakh, which includes Rs. 5,000 as registration charges and Rs. 15,000 as road tax. This means that the car’s selling price is Rs. 5 lakh. However, in case it gets stolen or gets completely damaged, then with the comprehensive policy or standalone own-damage plan, you would only get Insured Declared Value (IDV) of your car, i.e., Rs. 5 lakh less depreciation. It will bring a loss of at least Rs. 20,000 for you as you have paid Rs. 5.20 lakh for it. Hence, if you own an invoice protection cover, you could get a claim as much as Rs. 5.20 lakh and refrain yourself from suffering any loss.

Features of Return To Invoice Add-On Cover

Below are some crucial points you need to know about the Return To Invoice add-on cover:

  • Generally, this add-on can be bought for cars not older than 3 years of age.
  • You can get it by paying a cost of around 10% more than your normal comprehensive/standalone own-damage car insurance policy.

Who Should Buy RTI Add-On Cover?

  • Those who have a new car
  • Those who have an expensive car
  • Those who live in a theft-prone area.

Take Away

The Return To Invoice add-on cover is imperative to get compensation for the entire loss incurred by your car without losing the registration charges and tax amount paid by you. With this coverage, you can get the coverage up to the on-road price of your car. If your car is new or expensive, owing this add-on becomes indispensable. Buy it today and shield yourself from the expense of the total loss of your car in the future.

Disclaimer: This article is issued in 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.

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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