Your bike is one of the most prized possessions that you have. From taking you from one point to the other to helping you fulfill your dream of becoming a rider, your bike serves many purposes. This is why a bike is so precious and you protect it with the best insurance cover. Sadly though, even after your best efforts, at times the situation goes against you and the bike is either lost, stolen or damaged beyond repair. At such a time, having the return to invoice cover proves to be beneficial. Take a look at this article to know more.
Disclaimer: The above mentioned prices are for a 2 year old Hero Honda Karizma R 223 CC, registered in Navi Mumbai & previous policy has expired.
Return to invoice, commonly known as RTI, is a popular bike insurance rider. When you have this rider, you stand to get the ex-showroom price of the vehicle when it is stolen or damaged beyond repair.
In the absence of the rider, you will only get the insured declared value (IDV) of the vehicle. The IDV is the actual cost of the bike, minus the depreciation value. The IDV is much lower than the price you originally paid for the bike.
When you have the RTI Add-on cover, the depreciation is not considered. The bike’s current value, along with the road tax and registration amount you paid when purchasing it, is paid back to you.Bike insurance is mandatory in India.
The rate of depreciation makes the IDV of the bike fall considerably. Take a look at the table below to get a better understanding of this:
| Age of the bike | IDV (% of Ex-showroom) |
|---|---|
| Less than 6 months | 95% |
| Between 6 months and 1 year | 85% |
| 1 to 2 years | 80% |
| 2 to 3 years | 70% |
| 3 to 4 years | 60% |
| 4 to 5 years | 50% |
| More than 5 years | Negotiable |
The claim amount will be settled after taking the IDV into account. This will cause a huge gap between the actual price of the bike and the amount you receive. But if you have the RTI rider, the gap will be met and you will get the ex-showroom price of the bike.
The return to invoice insurance cover applies in three cases:
The RTI rider will kick in when the bike is damaged beyond repair or not recovered after 90 days of being stolen or lost.
Here are some of the major benefits you get if you buy the return to invoice rider along with the comprehensive bike plan:
These are some of the best benefits you stand to receive if you invest in the RTI rider.
While every biker can benefit from the RTI rider, there are some people who need it more than the others:
If you find yourself in any of the above-mentioned categories, get the return to invoice cover right away.
The benefits under the return to invoice insurance cover won't be available under the following circumstances:</p>
Note: Keep these exclusions in mind when making a claim.
There are many useful bike insurance riders available with comprehensive motor insurance plans. The return to invoice cover India is a commonly purchased rider that you can also consider getting. Keep all the points mentioned above in mind and see whether or not the rider would be of use to you. If it would be, then get it when you buy your bike insurance plan or renew the policy.
No, you get the price value, along with the road tax and registration charges.
No, the return to invoice cover is a rider that you can opt to buy with your comprehensive bike insurance plan. It is not a compulsory purchase to make.
No, the accessories or any external part that you attached to the bike will not be covered under the RTI insurance rider. You will only be compensated with the ex-showroom price of the vehicle.
You can buy the rider when you buy a new bike insurance plan online. You can also do so when you are renewing your policy after the completion of a policy period. This can also be done offline via your insurance agent.
The different insurance providers have different rates, but usually, the rider is priced at about 10% of the bike insurance premium rate.
