{"id":18548,"date":"2024-10-09T10:28:27","date_gmt":"2024-10-09T04:58:27","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=18548"},"modified":"2024-11-08T11:28:12","modified_gmt":"2024-11-08T05:58:12","slug":"return-to-invoice","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/return-to-invoice\/","title":{"rendered":"Return to Invoice Cover: What is RTI Cover in Car Insurance?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e42b7fce41b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e42b7fce41b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#What_Is_Return_To_Invoice\" >What Is Return To Invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#What_is_Return_to_Invoice_Cover_RTI_in_Car_Insurance\" >What is Return to Invoice Cover (RTI) in Car Insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#How_Does_RTI_Cover_Work\" >How Does RTI Cover Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Example_of_RTI_In_Car_Insurance\" >Example of RTI In Car Insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Benefits_of_Having_Return_to_Invoice\" >Benefits of Having Return to Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#What_is_Covered_and_Not_Covered_in_Return_to_Invoice\" >What is Covered and Not Covered in Return to Invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#How_Do_You_Calculate_RTI\" >How Do You Calculate RTI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#What_is_the_Cost_of_Return_To_Invoice\" >What is the Cost of Return To Invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#How_to_opt_for_RTI_Cover\" >How to opt for RTI Cover?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#How_Long_is_The_Invoice_Protection_Cover_Valid\" >How Long is The Invoice Protection Cover Valid?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Who_Should_Go_for_RTI_Coverage_in_Car_Insurance\" >Who Should Go for RTI Coverage in Car Insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#What_is_the_Difference_Between_RTI_and_IDV\" >What is the Difference Between RTI and IDV?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Which_Add-on_Cover_is_Better_ZERO_Depreciation_or_RTI\" >Which Add-on Cover is Better: ZERO Depreciation or RTI?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Important_Things_to_Know_About_RTI_Cover\" >Important Things to Know About RTI Cover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/razorpay.com\/blog\/return-to-invoice\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_Is_Return_To_Invoice\"><\/span>What Is Return To Invoice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Return to Invoice Cover, or RTI is a car insurance add-on that ensures you get the full invoice value of your vehicle in case of total loss or theft. Without this feature, your insurance usually only covers the car&#8217;s depreciated value. RTI also includes registration fees and road taxes along with the original price of the car, helping you recover the complete cost. It bridges the gap between the current market value and what you initially paid. This add-on is handy for new or high-value cars, giving you extra financial protection.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_is_Return_to_Invoice_Cover_RTI_in_Car_Insurance\"><\/span>What is Return to Invoice Cover (RTI) in Car Insurance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>RTI or Return to Invoice is a cover that enables you to receive compensation when a car is stolen or when it is beyond repair. Earlier, this compensation amount was equivalent to the car&#8217;s invoice value i.e., the original value of the car when you bought it. Now, we\u2019ve enhanced the coverage under RTI, allowing policyholders to claim an amount based on the value chosen during the add-on purchase. This value could be the original invoice value from when the vehicle was first purchased, the new invoice value when the insurance was bought, or the updated invoice value in case the vehicle is completely damaged or stolen.<\/p>\n<p>For example, if your car is stolen and the police are unable to recover it, you may find yourself in a tough spot. Additionally, if your vehicle is involved in an accident and suffers irreparable damage, you can file a claim. This is where RTI becomes valuable. With return to invoice insurance, you don\u2019t need to worry, as it ensures you receive compensation equal to the invoice value of your vehicle.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_Does_RTI_Cover_Work\"><\/span><span data-text-color-mark=\"rgb(14, 16, 26)\">How Does RTI Cover Work?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Return to invoice insurance is activated only in two situations: when your car is stolen and not recovered or when it&#8217;s declared a total loss due to irreparable damage. In any case, RTI offers the original invoice value instead of the depreciated market value.<\/p>\n<p dir=\"ltr\"><strong>To claim RTI, follow the below steps:<\/strong><\/p>\n<ol dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\"> Notify your insurance company immediately if your car is stolen or completely damaged<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Lodge a First Information Report (FIR) with the police in case of theft<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Fill out the claim form provided by your insurer, clearly mentioning that you have the RTI cover<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">The insurer will inspect the car\u2019s condition or verify the theft details. If they find the loss is genuine, they will approve your claim.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">You will be paid the invoice value of your car, including taxes and registration charges, instead of the current depreciated value.<\/span><\/p>\n<\/li>\n<\/ol>\n<p dir=\"ltr\"><strong>Here are the documents required:<\/strong><\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Original invoice showing the car\u2019s price, including all taxes and charges<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Copy of your car insurance policy showing the RTI add-on<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">FIR filed with the local police, especially for theft cases<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Copy of the car\u2019s registration certificate to confirm ownership<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Duly filled-out claim form from your insurer<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">If the car has been damaged, a repair estimate from the garage confirming it\u2019s a total loss<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Copy of the driver\u2019s license<\/span><\/p>\n<\/li>\n<\/ul>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Example_of_RTI_In_Car_Insurance\"><\/span>Example of RTI In Car Insurance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">You just bought a brand new hatchback for \u20b99 lakhs and live in a flood-prone area. After 1.5 years, a severe flood hits the neighborhood, washing away your car, and despite every effort, you cannot recover it.<\/span><\/p>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">By opting for Return to Invoice (RTI) coverage while buying a car insurance policy, you will benefit. This extra cover will ensure your insurance provider will compensate you with the invoice value of the car, not the depreciated one. Here is how this process works:<\/span><\/p>\n<h3 dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">1. Occurrence of Loss<\/span><\/strong><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Your car has been lost in the devastating floods. Quickly report the incident to your insurance company and file an FIR with the local police.<\/span><\/p>\n<h3 dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">2. Raising the Claim<\/span><\/strong><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">You get in touch with your insurer and initiate a claim under the RTI cover. You provide all required documents, including the FIR, the car&#8217;s original invoice, and any photos of the event.<\/span><\/p>\n<h3 dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">3. Survey and Assessment<\/span><\/strong><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">The insurance company assigns a surveyor to investigate, who checks your documents and the extent of the damage. Since your car is unrecoverable, it&#8217;s declared a total loss.<\/span><\/p>\n<h3 dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">4. Claim Settlement<\/span><\/strong><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">After the assessment, the insurance company processes the claim, and you receive the full invoice amount of \u20b99 lakh, minus any deductibles. Without RTI, you would have received only the depreciated Insured Declared Value (IDV), which would be much lower.<\/span><\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Benefits_of_Having_Return_to_Invoice\"><\/span>Benefits of Having Return to Invoice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\">Full Compensation for Total Loss<\/h3>\n<p dir=\"ltr\">RTI coverage ensures you receive the full invoice value of your car in the event of a total loss, such as severe damage or theft.<\/p>\n<h3 dir=\"ltr\">Protection Against Depreciation<\/h3>\n<p dir=\"ltr\">With RTI coverage, you are protected against the depreciation cost of the car. In case of a total loss, you won\u2019t have to worry about the reduced market value of your car.<\/p>\n<h3 dir=\"ltr\">Financial Security<\/h3>\n<p dir=\"ltr\">RTI covers the gap between the insured declared value and the invoice value, ensuring you are not out of pocket for the difference.<\/p>\n<h3 dir=\"ltr\">Coverage for On-Road Costs<\/h3>\n<p dir=\"ltr\">RTI coverage often includes on-road costs, such as registration fees, road tax, and insurance premiums. That means you are reimbursed for these additional expenses, providing comprehensive financial protection.<\/p>\n<h3 dir=\"ltr\">Peace of Mind<\/h3>\n<p dir=\"ltr\">Knowing that you are fully covered in case of a total loss or theft offers peace of mind. You can drive your car without worrying about financial loss due to unforeseen events.<\/p>\n<h3 dir=\"ltr\">Enhanced Resale Value<\/h3>\n<p dir=\"ltr\">Having RTI coverage can enhance your car&#8217;s resale value. Potential buyers may find your car more attractive, knowing it has been well-protected, which can lead to a better resale price.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_is_Covered_and_Not_Covered_in_Return_to_Invoice\"><\/span>What is Covered and Not Covered in Return to Invoice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\">1. What is Covered Return to Invoice?<\/h3>\n<h4 dir=\"ltr\">Living in an Area Prone to Theft<\/h4>\n<p dir=\"ltr\">If you live in a neighborhood where car theft is common, RTI can provide peace of mind. If your car is stolen and can\u2019t be recovered, RTI ensures you get the full invoice value, not just the depreciated IDV.<\/p>\n<h4 dir=\"ltr\">No Secure Parking is Available<\/h4>\n<p dir=\"ltr\">If you don\u2019t have access to secure parking and often park on the street or in open spaces, RTI offers full invoice value, adding an extra layer of protection.<\/p>\n<h4 dir=\"ltr\">Financial Stress<\/h4>\n<p dir=\"ltr\">Unexpected car expenses can increase financial stress. RTI cover eases this by providing necessary compensation.<\/p>\n<h4 dir=\"ltr\">Living in a Natural Calamity Prone Area<\/h4>\n<p dir=\"ltr\">Natural disasters like floods, storms, or earthquakes can cause severe damage to vehicles. If you live in an area vulnerable to such calamities, RTI can be a valuable addition to your policy.<\/p>\n<h3 dir=\"ltr\">2. What is Not Covered in Return to Invoice?<\/h3>\n<h4 dir=\"ltr\">Small Dents or Minor Damages<\/h4>\n<p dir=\"ltr\">RTI doesn\u2019t cover small dents or minor damages. It is designed specifically for situations where the car is stolen or destroyed. For smaller issues, you would need to rely on your regular comprehensive insurance.<\/p>\n<h4 dir=\"ltr\">Third-party (TP) Liability Policy<\/h4>\n<p dir=\"ltr\">RTI isn\u2019t applicable if you only have third-party insurance. While third-party insurance covers damages you cause to others, it doesn\u2019t cover your own car. RTI is an add-on that is available with comprehensive car insurance.<\/p>\n<h4 dir=\"ltr\">Age of the Car<\/h4>\n<p dir=\"ltr\">RTI is available for new cars up to 3 years old. As your car gets older and its value depreciates, insurers may stop offering RTI for it. Always check with your provider for the specific age limits.<\/p>\n<h4 dir=\"ltr\">No FIR Filed<\/h4>\n<p dir=\"ltr\">In the event of a car theft, filing an FIR to claim RTI is crucial. If you don\u2019t file one, your claim for the stolen vehicle won\u2019t be processed.<\/p>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"How_Do_You_Calculate_RTI\"><\/span>How Do You Calculate RTI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">The Return to Invoice amount is calculated by comparing the original invoice value of the car with its current market value. The formula is:<\/span><\/p>\n<p dir=\"ltr\"><strong>Several factors influence the RTI calculation:<\/strong><\/p>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">(RTI Amount) = (Invoice Value) &#8211; (Depreciated Value)<\/span><\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Invoice Value:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> The car&#8217;s original price listed on the invoice, including the ex-showroom price<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Road Tax:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> Tax paid to the government for vehicle use on public roads, varying by state.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Registration Fees:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> Fees for registering the vehicle with the RTO, including the registration certificate and number plate charges.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Depreciation:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> RTI covers the full invoice value without accounting for the car&#8217;s depreciation, making it advantageous.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Policy Terms:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> The insurance policy&#8217;s terms, including coverage details and exclusions, can affect the RTI amount.<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\"><strong>Here&#8217;s an example to illustrate RTI calculation:<\/strong><\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Invoice Value:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> \u20b910,00,000 (includes ex-showroom price, road tax, and registration fees)<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Depreciated Value:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> \u20b97,00,000 (current market value after depreciation)<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">RTI Amount Calculation:<\/span><\/strong><span data-text-color-mark=\"rgb(14, 16, 26)\"> \u20b910,00,000 &#8211; \u20b97,00,000 = \u20b93,00,000<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">In this case, the RTI amount would be \u20b93,00,000, payable by the insurance company in the event of a total loss or theft.<\/span><\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"What_is_the_Cost_of_Return_To_Invoice\"><\/span>What is the Cost of Return To Invoice?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Adding RTI coverage generally increases your car insurance premium by 8% to 10%. For instance, a \u20b910,000 policy could go up to approximately \u20b910,800 to \u20b911,000. The exact increase varies with the car\u2019s details, the insurer\u2019s rules, and where you live.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_to_opt_for_RTI_Cover\"><\/span>How to opt for RTI Cover?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><strong>1. Active Comprehensive Plan<\/strong><\/h3>\n<p>If you already have a comprehensive car insurance plan, you can add RTI coverage when renewing your policy.<\/p>\n<h3><strong>2. No Active Comprehensive Plan<\/strong><\/h3>\n<p>If you don\u2019t have a comprehensive plan, you can switch your car insurance policy during renewal. Alternatively, you can cancel your existing plan and switch to a new insurer to obtain RTI coverage right away.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"How_Long_is_The_Invoice_Protection_Cover_Valid\"><\/span>How Long is The Invoice Protection Cover Valid?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">The RTI cover typically lasts for one year. You must renew this additional coverage annually along with your comprehensive car insurance policy. The cover duration can vary depending on your insurer and chosen plan. Some insurers may offer RTI coverage for cars up to three years old. To renew or extend your RTI coverage, renew your comprehensive car insurance policy and include the RTI add-on.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Who_Should_Go_for_RTI_Coverage_in_Car_Insurance\"><\/span>Who Should Go for RTI Coverage in Car Insurance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Car owners whose vehicles are less than three to five years old<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Cars with a comprehensive car insurance policy and includes RTI. Third-party insurance cannot include RTI.<\/span><\/p>\n<\/li>\n<\/ul>\n<p dir=\"ltr\"><strong><span data-text-color-mark=\"rgb(14, 16, 26)\">Examples of typical candidates for RTI Coverage:<\/span><\/strong><\/p>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Those who have recently acquired a new vehicle<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Individuals residing in areas known for high car theft rates<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">Residents of areas frequently affected by natural disasters such as floods or earthquakes<\/span><\/p>\n<\/li>\n<\/ul>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_Between_RTI_and_IDV\"><\/span>What is the Difference Between RTI and IDV?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table dir=\"ltr\">\n<tbody>\n<tr>\n<td data-colwidth=\"112\">\n<h3 dir=\"ltr\" style=\"text-align: center;\" data-line-height-align=\"1.2\"><strong>Aspect<\/strong><\/h3>\n<\/td>\n<td style=\"text-align: center;\">\n<h3 dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Return to Invoice<\/strong><\/h3>\n<\/td>\n<td>\n<h3 dir=\"ltr\" style=\"text-align: center;\" data-line-height-align=\"1.2\"><strong>Insured Declared Value<\/strong><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"112\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Definition<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">RTI is an add-on ensuring the policyholder receives the car&#8217;s original invoice value in case of total loss or theft.<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">IDV represents the maximum payout by the insurer for a total loss or theft based on the car\u2019s present market value<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"112\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Coverage<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">RTI covers the difference between the IDV and the original invoice value, including road tax and registration fees.<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">IDV covers the current market value of the car, which is a factor in depreciation.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"112\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Calculation<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">RTI is based on the car&#8217;s original invoice value, ignoring depreciation.<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">IDV is calculated by considering the car\u2019s current market price, adjusted for depreciation.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"112\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Benefits<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>It provides a higher claim amount as it covers the original invoice value.<\/li>\n<li>Beneficial in case of total loss or theft.<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>Provides the current market value of the car.<\/li>\n<li>Lower premium compared to RTI.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"112\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Example<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">If a car worth \u20b910 lakhs is stolen, RTI ensures that the policyholder gets the full \u20b910 lakhs back.<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">If the vehicle&#8217;s IDV is reduced to \u20b98 lakhs because of depreciation, you will be eligible to receive \u20b98 lakhs.<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 dir=\"ltr\" data-line-height-align=\"1.38\"><span class=\"ez-toc-section\" id=\"Which_Add-on_Cover_is_Better_ZERO_Depreciation_or_RTI\"><\/span>Which Add-on Cover is Better: ZERO Depreciation or RTI?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table dir=\"ltr\">\n<tbody>\n<tr>\n<td data-colwidth=\"134\">\n<h3 dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Aspect<\/strong><\/h3>\n<\/td>\n<td>\n<h3 dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Zero Depreciation Cover<\/strong><\/h3>\n<\/td>\n<td>\n<h3 dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Return to Invoice Cover<\/strong><\/h3>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"134\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Definition<\/strong><\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">Zero Depreciation cover ensures that your car&#8217;s depreciation value is not factored in when processing claims, giving you the benefit of receiving the total repair cost without reductions.<\/p>\n<\/td>\n<td>\n<p dir=\"ltr\" data-line-height-align=\"1.2\">RTI cover assures that if your vehicle is stolen or goes through a total loss, you will be reimbursed the full invoice amount, including registration and road tax costs.<\/p>\n<p>&nbsp;<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"134\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Benefits<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>Full claim amount without depreciation deduction.<\/li>\n<li>Ideal for new cars<\/li>\n<li>Covers all parts of the vehicle except for some exclusions.<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>Covers the gap between the insured declared value and the invoice value.<\/li>\n<li>Includes registration and road tax costs<\/li>\n<li>Provides financial protection against total loss or theft.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"134\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Limitations<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>Higher premium costs compared to standard policies.<\/li>\n<li>Limited to new vehicles, typically up to 3 years old.<\/li>\n<li>Limited number of claims per year<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li>Higher premium costs compared to standard policies<\/li>\n<li>This is only applicable in cases of total loss or theft<\/li>\n<li>It is not beneficial for minor damages or partial losses.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td data-colwidth=\"134\">\n<p dir=\"ltr\" data-line-height-align=\"1.2\"><strong>Choosing Based on Needs<\/strong><\/p>\n<\/td>\n<td>\n<ul>\n<li>Suitable for those with new vehicles who want to avoid out-of-pocket expenses for repairs.<\/li>\n<li>Ideal for individuals who frequently claim insurance for minor damages.<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul dir=\"ltr\">\n<li>Best for those who want complete financial protection against total loss or theftSuitable for individuals who have financed their vehicle and want to cover the loan amount.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Important_Things_to_Know_About_RTI_Cover\"><\/span>Important Things to Know About RTI Cover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul dir=\"ltr\">\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">RTI is an optional car insurance add-on that provides extra protection. Opting for it will increase your car insurance policy&#8217;s overall premium, as it covers a broader scope than standard policies.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">RTI coverage covers vehicles less than three years old. Older cars may not be eligible, as their value depreciates significantly over time.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">The RTI add-on only applies in case of a total loss, such as a stolen or damaged car beyond repair. It does not cover other damages, like minor accidents or repairs that can be fixed.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">RTI allows the policyholder to claim the complete amount they originally paid for the vehicle, including the car&#8217;s ex-showroom price, registration, and taxes, instead of just the depreciated value.<\/span><\/p>\n<\/li>\n<li>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">To fully benefit from RTI, pair it with a comprehensive car insurance policy. While RTI covers total loss or theft, comprehensive insurance ensures coverage for a broader range of potential damages.<\/span><\/p>\n<\/li>\n<\/ul>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 dir=\"ltr\">1. Is a return to invoice insurance worth it?<\/h3>\n<p dir=\"ltr\">Return to Invoice insurance is a valuable option for new car owners. It offers coverage for the entire invoice amount in the event of total loss or theft, which extends beyond the protection provided by standard policies. However, it might not be as cost-effective for older or used cars.<\/p>\n<h3 dir=\"ltr\">2. How many years is the return to invoice cover?<\/h3>\n<p dir=\"ltr\">RTI insurance usually offers protection for up to 3 years from when you buy your car, but this timeframe might differ depending on the insurer and the specifics of the policy. It is essential to check the policy details to ensure it suits your needs.<\/p>\n<h3 dir=\"ltr\">3. Is RTI insurance available for all vehicles?<\/h3>\n<p dir=\"ltr\">RTI insurance is often available for new vehicles and those up to three years old but is typically not offered for older or used cars. It is also not available for commercial vehicles. Be sure to check with your insurer for detailed eligibility and policy information.<\/p>\n<h3 dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">4. Can I add RTI insurance to my existing car insurance policy?<\/span><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">You can opt to add RTI insurance to your existing car insurance policy. This add-on is usually available during policy renewal or when buying a new policy.<\/span><\/p>\n<h3 dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">5. Is RTI insurance mandatory?<\/span><\/h3>\n<p dir=\"ltr\"><span data-text-color-mark=\"rgb(14, 16, 26)\">No, RTI insurance is not compulsory. It is an optional add-on that offers extra protection for total loss or theft.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is Return To Invoice? Return to Invoice Cover, or RTI is a car insurance add-on that ensures you get the full invoice value of your vehicle in case of total loss or theft. Without this feature, your insurance usually only covers the car&#8217;s depreciated value. RTI also includes registration fees and road taxes along<\/p>\n","protected":false},"author":86,"featured_media":18899,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[26],"tags":[769],"class_list":{"0":"post-18548","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-payments","8":"tag-return-to-invoice"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/18548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/86"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=18548"}],"version-history":[{"count":4,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/18548\/revisions"}],"predecessor-version":[{"id":18898,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/18548\/revisions\/18898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/18899"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=18548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=18548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=18548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}