Return-to-Invoice Cover

Return-to-Invoice (RTI) cover is an optional motor insurance add-on that pays the original invoice value of the vehicle (ex-showroom price plus road tax plus registration charges) in the event of a total loss — theft, or an accident severe enough to be declared a constructive total loss — instead of the standard IDV-capped payout. The standard own-damage policy pays up to the IDV, which is the ex-showroom price minus an IRDAI-notified depreciation schedule based on vehicle age. For a one-year-old car, the IDV is roughly 15-20% lower than the on-road price the buyer originally paid, and for a three-year-old car the gap widens to 30-35%.

RTI bridges this gap for the early years, which matters most when the buyer's emotional and financial investment in the vehicle is highest. Worked example: Aditi buys a new SUV with an ex-showroom price of ₹14 lakh and an on-road price (including road tax, registration, and insurance) of ₹16 lakh. After 18 months, the vehicle is stolen from a parking lot, and despite a police FIR and investigation, it is not recovered.

The IDV at the 18-month mark is roughly ₹11. 2 lakh (after 20% depreciation from the ex-showroom price). Without RTI, the insurer settles at ₹11.

2 lakh — a ₹4. 8 lakh shortfall against what Aditi originally paid. With RTI, the insurer pays the original on-road price of ₹16 lakh (or ex-showroom plus statutory dues, depending on the rider's exact wording), eliminating the gap.

The RTI rider typically costs ₹1,200 to ₹3,500 a year on cars in their first three to five years, depending on the IDV. Most insurers cap RTI eligibility at vehicles up to three or five years old, after which the rider is no longer offered. A common misconception is that 'RTI pays the price of buying a new car today'.

It does not. RTI pays the original invoice price the buyer paid at registration, not the current showroom price of an equivalent new model — and showroom prices typically rise 4-8% a year, so two years later the gap between the RTI payout and a fresh purchase has reopened to some extent. Another common misconception is that RTI applies to partial-damage claims.

It does not — RTI is a total-loss-only add-on. For partial damage, the relevant rider is zero depreciation. The two riders are complementary, not substitutes; an owner of a new car often adds both.

Related: idv, zero-depreciation-cover, comprehensive-insurance.