Return to Invoice (RTI) insurance is an add-on cover in car insurance that helps bridge the gap between your car’s Insured Declared Value (IDV) and the original invoice value in the event of total loss or theft.

What is Return to Invoice (RTI) Insurance?

When you purchase a new car, its value begins to depreciate immediately. Standard comprehensive car insurance covers the depreciated value—known as the Insured Declared Value (IDV)—not the amount you actually paid for the car. If your car is stolen or completely damaged beyond repair, your base policy will reimburse you based on its current market value, which could be significantly lower than the original price.

RTI Insurance fills this gap by paying the difference between the car’s invoice value and the IDV. In short, it helps you recover the full cost you paid, including registration and road tax (in most cases).

How Does RTI Insurance Work?

RTI insurance ensures that you receive the full invoice value of your car in case of total loss or theft. This includes the ex-showroom price, registration charges, and road tax paid at the time of purchase. Without RTI, you would only receive the depreciated market value of the car.

Example Scenario

Consider the following example:

• Original price (invoice value): ₹12,00,000
• IDV after depreciation: ₹9,00,000
• Car gets stolen or totaled

Without RTI: You receive ₹9,00,000
With RTI: You receive ₹12,00,000

What Does RTI Insurance Cover?

RTI insurance typically covers:

• Total loss due to accidents
• Theft of the insured vehicle
• Price gap between IDV and invoice value
• Registration charges and road tax (varies by policy)

What is Not Covered by RTI Insurance?

RTI insurance does not cover:

• Minor damages or partial loss
• Mechanical or electrical breakdown
• Claims outside the scope of comprehensive insurance
• Cars older than 3–5 years (varies by insurer)

Eligibility Criteria for RTI Insurance

RTI insurance is usually available for:

• New cars or cars less than 3–5 years old
• First owners of the car
• Cars insured under a comprehensive policy

Benefits of RTI Insurance

Some of the key benefits include:

• Full reimbursement of the car's invoice value in case of total loss or theft
• Coverage of registration charges and road tax
• Peace of mind for new car owners
• Financial protection against significant depreciation losses

When Should You Consider RTI Insurance?

RTI insurance is especially beneficial if:

• You’ve purchased a new car or high-end vehicle
• You live in an area with high theft rates
• You want peace of mind and full protection in worst-case scenarios

Cost of RTI Insurance

RTI insurance is an add-on cover and comes at an additional premium. The cost varies depending on the insurer and the value of the car. Typically, RTI costs about 10% more than your comprehensive car insurance premium.

How to Claim RTI Insurance?

In the event of total loss or theft:

• Inform your insurer immediately
• File a police report in case of theft
• Submit necessary documents, including the original invoice, registration certificate, and FIR (if applicable)
• The insurer will assess the claim and reimburse the invoice value as per the policy terms

Conclusion

RTI insurance is a valuable add-on that provides comprehensive financial protection for new car owners. By covering the gap between the depreciated value and the original invoice price, it ensures that you are not financially burdened in the event of a total loss or theft. While it comes at an additional cost, the benefits often outweigh the expense, offering peace of mind and full value recovery.