What is Return To Invoice (RTI) in Car Insurance? All you need to know

New Delhi:

Return to Invoice (RTI) is a critical add-on to car insurance that many may not fully understand.

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This cover provides invaluable protection by ensuring you receive the full purchase price of your car in case of total loss or theft, rather than just the depreciated Insured Declared Value (IDV).

Let’s delve into the intricacies of RTI and why it’s a worthy investment for car owners.

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What is Return to Invoice?

Return to Invoice (RTI) is an add-on cover to comprehensive car insurance.

It enables policyholders to claim the entire purchase price (invoice value) of their car in case of total loss or theft.

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While this cover comes at an additional cost, typically around 10% more than the standard premium,

it offers peace of mind and financial security.

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Protecting Against Depreciation:

The primary advantage of RTI is its ability to shield you from the effects of depreciation.

With standard insurance, the payout is based on the depreciated IDV value of the car. However, RTI ensures you receive the full purchase price you paid for the car, mitigating the financial impact of depreciation.

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Claiming the Purchase Price:

In scenarios where your car is stolen or irreparably damaged in an accident, RTI cover proves invaluable. Instead of settling for the depreciated value, you can claim the original purchase price of the car.

This ensures that you’re not left with a significant financial loss in the event of a total loss situation.

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Real-Life Scenarios:

Consider a situation where your car is stolen, and law enforcement is unable to recover it.

Without RTI, you may struggle to recoup a substantial portion of your initial investment.

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Similarly, in the unfortunate event of severe damage rendering your car beyond repair, RTI ensures you receive the amount you spent at the time of purchase,

safeguarding you from depreciation losses.

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