Things to Know About Return to Invoice Cover (RTI) In Car Insurance

Car Insurance

Gone are the days when purchasing a car was once in a lifetime event. Thanks to easy financing options and affordable pricing, it is easier than before. In India, it is mandatory to have insurance to be able to drive your car on public roads. You may already know all about car insurance online, its benefits, and coverage.

No denying, car insurance offers protection during road mishaps. However, you should know that car insurance is not solely about financial protection against liabilities. It is much more. You must also know about other important aspects such as the Return to Invoice (RTI)when buying vehicle insurance.

The RTI cover is best described as an add-on cover that comes along with a comprehensive car insurance policy. Insurers offer this add-on coverage for new vehicles, whereby you can claim full compensation in specific cases. This cover allows you compensation equal to the invoice value of your vehicle. However, you can claim this compensation onlyif your car gets stolen or is damaged beyond repair.

Owing to the RTI benefits, it becomes important to know all about RTI when purchasing motor insurance. Here are some important aspects of RTI in car insurance.

What is RTI in car insurance?

RTI allows you to claim compensation up to the amount stated in the original invoice of the car. Insurers offer RTI benefits as extra coverage. Also, it is up to the car owner’s discretion whether they want to include RTI in car insurance or not. Remember, existing laws do not mandate you to opt for RTI as an add-on when opting for car insurance.

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How does RTI work?

Where regular insurance coverage is concerned, the maximum compensation you can claim is limited to the Insured Declared Value or IDV. Even so, when you opt for RTI in car insurance as an add-on cover, you bridge the gap between IDV and the invoice value of your car.

In all, RTI is beneficial because it lets you claim the on-road price of your car during unfortunate accidents. In other words, depreciation is not considered when you opt for RTI as an add-on option in your vehicle insurance policy.

 What are the benefits of opting for RTI as add-on coverage?

The benefits of availing RTI as an add-on option in your car insurance online plan are manifold. They include:

  • Increases coverage

The RTI cover can be bought when buying or renewing your vehicle insurance policy. Add-on options help by increasing your coverage scope and personalising your insurance plan. Nonetheless, many people do not purchase this add-on cover because they have to pay extra. However, opting for RTI in car insurance helps by providing maximum coverage during road accidents.

  • Compensates during car theft cases

The danger of car theft is a cause of concern in India. Several people spend all their hard-earned money to purchase a car, and getting robbed of their car puts them in a quandary.

Even so, if you opt for the RTI cover, you become eligible to claim compensation up to the invoice value of your car. This means you have less to worry about car thefts when you opt for RTI in car insurance.

  • Offers benefits to new car owners
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If you have plans to purchase a new car, then you may want to consider including RTI as an add-on cover in your vehicle insurance policy. By doing so, you need not worry much about losing your precious savings because of unavoidable road accidents.

Keep in mind, the RTI cover does not apply in some cases. It is not enforceable in cases of third-party policies. In addition, you cannot opt for RTI for insuring older cars. Furthermore, you can claim compensation against the RTI add-on cover only if your car faces total loss or is stolen. Apart from these situations, you are not eligible to claim the RTI benefits.


It is easy to see that RTI comes with a wide range of benefits. Hence, it is a wise decision to opt for the RTI add-on cover if purchasing a new car. After all, you would want financial freedom during car theft and complete car damage cases.

Also Read: Types of Damages You May Collect After a Car Accident


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