You must have a car insurance policy if you want to drive your car in India. Every vehicle operating on Indian roads must have a third-party insurance policy, according to the Motor Vehicles Act of 1988. The third-party policy complies with the law, but its range of coverage is constrained. The car’s own damages, which have significant financial costs as well, are not covered. This is where having comprehensive car insurance becomes essential. A comprehensive car insurance policy offers a wide range of protection, including coverage for third-party legal obligations and vehicle damage. Additionally, add-ons that are optional for comprehensive Bajaj Allianz car insurance policy help to extend the coverage’s reach. Claims are subject to terms and conditions set forth under the motor insurance policy.*
Return to Invoice Cover is one of the extras a comprehensive car insurance policy provides.
What Does RTI Cover, Or Return To Invoice?
Return to invoice is an add-on cover that increases the claim payable under the car insurance policy if the vehicle is stolen or irreparably damaged. The car’s invoice value is paid as claimed under the cover in the event of a theft or constructive total loss of the vehicle. The return to invoice cover fills in the gap between the invoice value of the car and the insured declared value (IDV) of the car insurance policy, giving policyholders a higher payout. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Regarding The Insured Declared Value (IDV)
As a car ages after you purchase it, its value declines. Therefore, the coverage limit of a comprehensive car insurance policy is determined after considering the car’s depreciated value. The Insured Declared Value (IDV), also known as the coverage level of a car insurance policy, is determined by subtracting depreciation from the car’s ex-showroom price. The registration fees and road tax you must pay for the vehicle are not included in the vehicle’s ex-showroom price. Additionally, the IDV decreases, and the car depreciation rate rises with each passing year.
The Advantages Of Return To Invoice Insurance Coverage
The following are reasons why adding the return to invoice cover to your car insurance policy offers car insurance benefits:
- Expanded areas of coverage
- You get a more comprehensive range of coverage in your car insurance policy if you choose the return to invoice cover.
- Increasing claim payment
- You receive the car’s invoice value as compensation in the event of a total loss or theft. This price includes the road tax and registration fees paid, increasing the amount of the claim you are eligible for.
- If you spend years saving for your dream luxury car, its total loss or theft would be a significant financial loss. Although your car insurance policy would cover the loss, the idv paid would be much less than the cost of the vehicle. Having a return to invoice cover is a blessing in such circumstances. Your financial loss would be reduced, and you could replace the damaged luxury car with a new one because the insurance would pay you the car’s invoice value, which is significantly higher than the IDV. Make sure that you are well aware of how to renew car insurance so that you get uninterrupted coverage. Claims are subject to terms and conditions set forth under the motor insurance policy. *
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*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
