What is Return To Invoice (RTI) Cover in Bike Insurance?
Introduction
When you buy a new bike, its value starts depreciating the moment it hits the road. Standard bike insurance policies compensate you based on the Insured Declared Value (IDV), which reduces every year due to depreciation. This often leaves policyholders undercompensated, especially in cases of theft or total loss.
This is where What is Return To Invoice (RTI) Cover in Bike Insurance? becomes highly valuable. RTI ensures that instead of receiving the depreciated value, you get the original invoice price of your bike, including registration charges and road tax (depending on the insurer’s terms).
In simple terms, RTI acts as a financial safety net that protects your investment and ensures you don’t suffer a major monetary loss.
What is Return To Invoice (RTI) Cover?
Return To Invoice (RTI) Cover is an optional add-on in comprehensive bike insurance policies. It bridges the gap between your bike’s current market value (IDV) and the original purchase price.
If your bike is:
- Stolen and not recovered, or
- Damaged beyond repair (total loss)
The insurer will reimburse the invoice value instead of the depreciated IDV.
Why is RTI Cover Important?
Many bike owners assume their insurance will cover the full cost of their vehicle, but that’s not always true. Due to depreciation, the claim amount can be significantly lower than what you originally paid.
Key Reasons to Consider RTI Cover:
1. Protection Against Depreciation
Bike value decreases every year. RTI ensures you recover the original cost.
2. Better Financial Security
You don’t have to bear out-of-pocket losses in case of total damage or theft.
3. Ideal for New Bikes
Most beneficial for bikes that are less than 3 years old.
4. Peace of Mind
You can ride stress-free knowing your investment is fully protected.
How Does RTI Cover Work?
Let’s understand with an example:
- Bike Purchase Price: ₹1,20,000
- IDV after 1 year: ₹95,000
- Bike stolen
Without RTI:
You receive ₹95,000 (IDV)
With RTI:
You receive ₹1,20,000 (Invoice Value)
This difference can be crucial, especially if you plan to buy a new bike after a loss.
What is Covered Under RTI Add-On?
RTI Cover typically includes:
- Ex-showroom price of the bike
- Road tax
- Registration charges
Some insurers may also include:
- Insurance cost (depending on policy terms)
What is Not Covered?
RTI Cover does not apply in all situations. Here are some common exclusions:
- Partial damages
- Mechanical or electrical breakdown
- Claims after a specific age limit (usually 3–5 years)
- Normal wear and tear
- Add-ons or accessories not included in invoice
Eligibility for RTI Cover
RTI Cover is usually available under certain conditions:
- Only with comprehensive bike insurance
- Applicable for new or relatively new bikes
- Generally valid for bikes up to 3 years old (varies by insurer)
Benefits of Return To Invoice Cover
1. Maximum Claim Settlement
You get the full invoice value instead of depreciated value.
2. Cost-Effective Add-On
RTI is available at a relatively low premium compared to the benefit it provides.
3. Ideal for High-Value Bikes
If you own an expensive bike, RTI is highly recommended.
4. Helps in Re-purchase
You can easily buy a new bike without financial strain
When Should You Buy RTI Cover?
RTI Cover is most useful in the following situations:
- You have recently purchased a new bike
- You live in areas with higher theft risks
- You want complete financial protection
- You own a premium or high-end bike
Is RTI Cover Worth It?
Yes, especially for new bike owners. The small extra premium can save you a significant amount in case of total loss or theft. It ensures that you are not financially burdened due to depreciation.
However, if your bike is older, the benefit of RTI reduces as the eligibility period is limited.
Frequently Asked Questions (FAQs)
1. What is Return To Invoice (RTI) Cover in Bike Insurance?
RTI Cover is an add-on that helps you get the full invoice value of your bike instead of the depreciated IDV in case of total loss or theft.
2. Is RTI Cover mandatory?
No, it is optional. You can choose to add it to your comprehensive bike insurance policy.
3. Can I buy RTI Cover for an old bike?
Usually, RTI is available only for bikes up to 3 years old. It may vary by insurer.
4. Does RTI Cover increase premium?
Yes, but only slightly. The cost is minimal compared to the financial protection it offers.
5. Is RTI Cover available with third-party insurance?
No, it is only available with comprehensive bike insurance policies.
6. Does RTI Cover include accessories?
Generally, it includes only items mentioned in the invoice. Accessories may or may not be covered.
7. What happens if my bike is partially damaged?
RTI Cover does not apply to partial damages. It is only applicable in total loss or theft cases.
Conclusion
Return To Invoice (RTI) Cover is one of the most valuable add-ons in bike insurance, especially for new bike owners. It ensures that you receive the full invoice value of your bike, protecting you from financial loss due to depreciation.
If you want complete peace of mind and maximum claim benefits, adding RTI Cover to your policy is a smart decision. Platforms like Square Insurance can help you compare policies and choose the right add-ons to ensure your bike is fully protected at all times.
