Return to Invoice (RTI) Cover in Motor Insurance: Meaning, Benefits, Cost & Claim Explained
When a car suffers total loss or theft, the normal insurance policy pays the IDV (Insured Declared Value) — which is lower than the actual purchase price of the car due to depreciation. This creates a significant gap between what you paid for the car and what the insurer compensates.
Return to Invoice (RTI) Cover bridges this gap by reimbursing the difference between:
- the original invoice value of the vehicle
- the declared IDV under normal insurance
- plus registration & road tax (in many policies)
This means you get the full on-road price of your car—not just depreciated value—if your vehicle is stolen or declared a total loss.
What Is Return to Invoice (RTI) Cover?
RTI is an add-on available with comprehensive or standalone own-damage insurance. It offers compensation equal to the insured vehicle’s original invoice value, including:
- Ex-showroom price
- Registration fee (RTO)
- Road tax
When Does Return to Invoice Cover Apply?
- Total Loss – when repair cost exceeds 75% of vehicle value
- Constructive Total Loss – car cannot be restored
- Theft – vehicle not traceable
Benefits of Return to Invoice Cover
- Reimburses full invoice value instead of depreciated IDV
- Covers road tax & registration costs (in most policies)
- Ideal protection against theft
- Huge financial relief for premium & luxury cars
- Ensures no monetary loss for new cars
Example: Car Purchase Price: ₹10,00,000 IDV after depreciation: ₹7,00,000 RTI payout: ₹10,00,000
Who Should Buy RTI Cover?
- Cars less than 5 years old
- Premium & luxury vehicles
- Cars parked in public/open areas
- Cars in theft-prone regions
- Buyers wanting full value recovery
Cost of Return to Invoice Cover
| Car Type | Approx Cost |
|---|---|
| Small Cars | ₹1,000 – ₹2,500 |
| Sedans | ₹2,000 – ₹3,500 |
| SUVs | ₹3,000 – ₹6,000 |
| Luxury Cars | ₹5,000 – ₹12,000+ |
What Is NOT Covered?
- Normal accidental damage (unless total loss)
- Partial theft
- Cars older than insurer’s limit (usually 3–5 years)
- Uninsured accessories
- Mechanical breakdown
How RTI Claim Works
- Inform insurer immediately
- Provide FIR in case of theft
- Surveyor inspects vehicle for total loss
- Submit documents (RC, invoice, ID proof)
- Approval → Insurer pays invoice value
Example Scenario
Your car worth ₹9,00,000 gets stolen. Normal payout = ₹6,00,000 (IDV) RTI payout = ₹9,00,000
So you recover full value—not depreciated value.
Is RTI Cover Worth It?
Yes! RTI is one of the most valuable add-ons for new and premium cars. It ensures financial protection in worst-case situations like theft and total loss.
Conclusion
Return to Invoice is a powerful add-on that helps you recover the full value of your vehicle without bearing financial loss due to depreciation. Highly recommended for new, luxury, and high-value cars.
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