Chat with us on WhatsApp
In this difficult time, Universal Sompo stands with you for Assam flood. Please find the details of our Nodal officer, toll-free number and WhatsApp number for policy & claims assistance. Nodal Officer – Gopal Chetri – gopal.chetri@universalsompo.com - 8291813923, Toll Free number - 1800 200 4030, WhatsApp number - 8655719551 | BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS AND FRAUDULENT OFFERS, IRDAI or its officials do not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

Return to invoice in car insurance is an optional add-on cover that can help bridge the gap between your car's Insured Declared Value (IDV) and its eligible invoice value in specific situations such as theft or total loss, subject to the policy terms and conditions.

In a standard comprehensive car insurance policy, the claim amount for total loss or theft is generally based on the car's IDV. Since the IDV factors in depreciation, it can be lower than the amount you originally paid for the car.

This is where RTI in car insurance can provide additional financial protection.

The RTI full form in car insurance is Return to Invoice. If your car suffers a total loss or is stolen and the claim meets the conditions of the RTI add-on, the insurer may pay the eligible difference between the applicable IDV and the invoice-related amount defined in the policy. Eligible registration charges and road tax may also be considered only where they are specifically covered under the policy wording.

RTI does not mean that the insurer will pay the original purchase price for every type of claim. It is generally applicable only to specified situations such as total loss or theft, and the exact settlement is governed by the policy wording.

How Does Return to Invoice Cover Work?

To understand return to invoice cover in car insurance, consider the difference between IDV and invoice value.

Suppose you purchased a new car for ₹10 lakh. After depreciation, its IDV at the time of the claim may be ₹8 lakh.

If the car is stolen or declared a total loss:

  • Without RTI: The admissible claim may be based on the applicable IDV of ₹8 lakh.
  • With RTI: If the claim qualifies under the add-on, the insurer may cover the eligible difference between the applicable IDV and the invoice-related amount defined in the policy, subject to policy terms.

This can help reduce the financial gap between what your car was worth at the time of loss and what you originally paid for it.

The exact calculation can vary depending on the insurer's policy, invoice value, taxes, registration costs and other applicable conditions.

Example of RTI in Car Insurance

Imagine:

  • Original invoice value₹10 lakh
  • IDV at the time of loss₹8 lakh
  • Eligible RTI benefitDifference between the applicable IDV and the eligible invoice-related amount covered by the policy

Under a standard policy, the claim may be settled based on the IDV.

With an RTI add-on car insurance cover, the policy may pay an amount closer to the eligible original invoice value, subject to the terms of the add-on.

This is why RTI can be particularly valuable for newer cars, where the difference between invoice value and IDV can be significant.

What is Covered Under RTI in Car Insurance?

The exact benefits of rti cover in car insurance depend on the policy wording. Generally, an RTI add-on is designed to provide additional protection when the insured vehicle suffers a qualifying total loss or is stolen and not recovered within the conditions specified by the policy.

Depending on the policy, RTI may cover:

  • The difference between the car's applicable IDV and eligible invoice value
  • Applicable registration charges
  • Road tax, where covered under the policy
  • Other eligible amounts specifically stated in the RTI add-on

The purpose is to help you get closer to the financial position you were in when you purchased the vehicle.

However, RTI is not a blanket guarantee of the original purchase price. The claim must first be admissible under the base policy and satisfy the conditions of the RTI add-on.

What is Not Covered Under Return to Invoice?

Understanding the exclusions is just as important as understanding the benefits.

RTI generally does not apply to ordinary repair claims or partial damage. If your car is involved in a minor accident and requires repairs, RTI does not normally increase the repair claim to the original invoice value.

Other situations that may not qualify include:

  • Partial damage to the vehicle
  • Normal wear and tear
  • Mechanical breakdown not covered under the base policy
  • Claims excluded under the underlying motor insurance policy
  • Situations that do not meet the policy's definition of total loss
  • Claims where the conditions of the RTI add-on have not been met
  • Uninsured accessories or modifications, where applicable

The specific exclusions can vary between insurance products.

Therefore, before purchasing rti in vehicle insurance, read the policy wording carefully to understand the qualifying conditions, limits and exclusions.

When Does the RTI Add-on Apply: Total Loss and Theft Explained

RTI is primarily designed for situations where repairing or recovering the vehicle is no longer possible or practical under the terms of the policy.

Total Loss

A car may be treated as a total loss or constructive total loss when the estimated cost of repair meets the threshold specified under the applicable motor insurance policy and regulatory framework.

If the claim qualifies as a total loss and the RTI add-on is active, the benefit may bridge the gap between the applicable IDV and the eligible invoice-related amount.

Theft

RTI may also apply if the insured car is stolen and is not recovered, subject to the conditions of the base policy and RTI add-on.

A theft claim generally requires the policyholder to report the theft promptly to the police and insurer, file the required police documentation, cooperate with the investigation and submit the documents requested under the policy.

The insurer will assess the claim before determining whether the theft qualifies for settlement under the policy.

It is important to remember that RTI in motor insurance does not apply simply because a car has been damaged. It is designed for specific loss situations defined by the policy.

How Much Does Return to Invoice Cover Cost?

The RTI premium in car insurance is an additional amount charged for selecting the return-to-invoice add-on.

There is no single fixed RTI premium for every car. The cost can depend on factors such as:

  • Car make and model
  • Age of the vehicle
  • Insured Declared Value
  • Location
  • Policy type
  • Add-ons selected
  • Insurer-specific pricing and underwriting criteria

The additional premium should be considered against the potential financial gap between your car's IDV and its eligible invoice-related value.

For a relatively new car, this difference can be substantial, making RTI worth considering.

However, price should not be the only deciding factor. Always compare the scope of coverage, eligibility conditions and exclusions.

RTI vs IDV in Car Insurance

RTI and IDV are related but serve different purposes.

IDV, or Insured Declared Value, represents the insurer's specified value for the vehicle for certain claims, particularly total loss or theft. It factors in depreciation and is generally lower than the vehicle's original purchase price as the vehicle ages.

RTI, on the other hand, is an optional add-on designed to bridge the gap between the applicable IDV and the eligible invoice-related amount when the claim meets the add-on's conditions.

FeatureIDVRTI
MeaningInsured Declared ValueReturn to Invoice
TypePart of motor insurance calculationOptional add-on
Based onVehicle value after applicable depreciationEligible invoice-related value
Applicable toRelevant claims under the base policySpecified total loss/theft situations
PurposeDetermines applicable vehicle valueHelps bridge the IDV-invoice gap
Additional premiumNo separate add-on premiumYes

Understanding return to invoice in car insurance means understanding that RTI does not replace IDV. Instead, it can supplement your protection when a qualifying total loss or theft occurs.

RTI vs Zero Depreciation Cover : Which Add-on Do You Need?

Both RTI and zero depreciation are popular car insurance add-ons, but they address different financial risks.

Zero depreciation cover helps reduce depreciation deductions on eligible parts during covered repair claims.

RTI cover helps address the difference between the applicable IDV and eligible invoice-related value in qualifying total loss or theft claims.

FeatureRTI CoverZero Depreciation
Primary purposeBridges IDV and eligible invoice valueReduces depreciation deductions
Typical claim situationTotal loss or theftCovered accident repairs
Helps with repair billsGenerally noYes, subject to terms
Helps with theftYes, if eligibleNo
Additional premiumYesYes
Best suited forNewer cars and higher invoice-IDV gapsCars where repair costs may be high

You may also be able to combine RTI and zero depreciation if both add-ons are available for your vehicle and meet the insurer's eligibility criteria.

They provide different types of protection rather than duplicating each other.

Who Should Buy Return to Invoice Cover?

RTI can be particularly useful for certain car owners.

Owners of New Cars

The gap between invoice value and IDV can be more relevant during the early years of vehicle ownership. RTI can help protect against a substantial financial loss if the car is stolen or declared a total loss.

Owners of Expensive Cars

The higher the value of the vehicle, the greater the potential financial difference between its invoice value and IDV.

People Financing Their Cars

If you have an outstanding car loan, a total loss or theft can create financial pressure if the insurance payout does not cover the amount you need to replace the vehicle or meet other financial obligations.

RTI can provide additional protection, although the loan balance and insurance settlement are separate matters.

People Living in High-Theft or High-Traffic Areas

If your location or usage exposes your vehicle to a higher risk of theft or accidents, additional protection against total loss can be worth considering.

Owners Who Want Higher Financial Protection

If you want to minimise the financial gap between your car's insured value and its original invoice-related value, RTI may be a useful add-on.

How to Claim Under RTI in Car Insurance

If your car is stolen or suffers damage that may result in total loss, inform the insurer as soon as possible.

A typical process involves:

  1. Inform the Insurer

    Report the incident through the insurer's designated claim-intimation channel.

  2. Report Theft to the Police

    In case of theft, file an FIR with the police and obtain the required documentation.

  3. Submit the Required Documents

    Depending on the claim, you may need documents such as:

    • Policy details
    • Registration certificate
    • Driving licence, where applicable
    • FIR or police documentation for theft
    • Original invoice or purchase documents
    • Keys and other vehicle-related documents
    • Claim form
    • Other documents requested by the insurer

  4. Claim Assessment

    The insurer assesses the claim to determine whether the loss qualifies under the base policy and RTI add-on.

  5. Settlement

    If the claim is admissible and meets the RTI conditions, the insurer calculates the settlement based on the applicable policy terms, including eligible invoice-related amounts.

Providing accurate documents and reporting the incident promptly can help avoid unnecessary delays.

How to Buy RTI Add-on with Universal Sompo Car Insurance

You can consider RTI while purchasing or renewing an eligible comprehensive car insurance policy with Universal Sompo.

A typical online purchase process involves:

  1. Visit Universal Sompo's car insurance page.

  2. Enter your vehicle and policy details.

  3. Select the applicable comprehensive car insurance plan.

  4. Review the available add-ons.

  5. Select RTI if it is available and suitable for your vehicle.

  6. Review the premium and coverage details.

  7. Check the exclusions, conditions and eligibility requirements.

  8. Complete the payment online.

  9. Save your policy documents for future reference.

Before selecting the add-on, check the maximum vehicle age permitted, qualifying loss conditions and exactly which invoice-related costs are covered.

Conclusion

Return to invoice in car insurance is an optional add-on that can help reduce the financial gap between your car's IDV and its eligible invoice-related value in qualifying total loss or theft claims.

Unlike zero depreciation, which primarily addresses depreciation deductions on eligible parts during repairs, RTI is designed around a different risk: the possibility of losing the vehicle and receiving a settlement based on an IDV that is lower than its original invoice value.

RTI can therefore be particularly useful for owners of newer or higher-value cars who want additional financial protection against theft or total loss.

Before purchasing RTI cover in car insurance, compare the additional premium, eligibility requirements, coverage limits and exclusions with your vehicle's age and value. The right add-ons should complement your base car insurance rather than simply increase the number of features in your policy.

Frequently Asked Questions