Updated on - 19 Jan 2026
Understanding the details of your car insurance policy can make a real difference during claims. One important feature that often gets overlooked is the Return to Invoice (RTI) cover. This add-on can help you recover the full invoice value of your car if it is stolen or damaged beyond repair.
RTI can make you get the original purchase price, including taxation and registration costs. For new car owners, it provides peace of mind knowing that even in the worst-case scenario, you can recover the amount you paid for your vehicle.
What is RTI in car insurance?
RTI in car insurance is an optional add-on cover that can be purchased with the plan. This offer is only available for vehicles that are new or less than five years old. It bridges the gap between your vehicle’s Insured Declared Value (IDV) and its original invoice price, making you receive the full invoice amount.
It’s designed to protect you from the financial impact of depreciation. Without RTI, insurers pay only the current market value of your car at the time of loss. With RTI, however, you get the amount you originally paid.
Benefits of RTI add-on cover
The Return to Invoice add-on offers several strong advantages that go beyond the protection provided by a standard car insurance policy:
- Full on-road price payout: Ensures you get back the complete amount spent on purchasing the car, including taxes and registration fees.
- No impact of depreciation: RTI bridges the gap between the current market value and the original purchase price, which is especially helpful for new cars that depreciate quickly.
- Easy vehicle replacement: The higher payout enables you to buy the same make and model again without arranging additional funds.
- Loan protection: For financed vehicles, RTI helps clear outstanding EMIs, preventing financial strain when the car is stolen or declared a total loss.
- Maintains financial stability: Helps preserve resale value and protects you from unexpected expenses after a severe loss.
- Greater peace of mind: Ensures your investment is fully protected, allowing you to drive confidently without worrying about depreciation or major incidents.
How does Return to Invoice cover work?
Having the RTI option is an investment that can help safeguard you, especially when financial liabilities are high.
For instance, if your car’s IDV is ₹8 lakh but the original invoice value was ₹10 lakh, the RTI add-on ensures you receive ₹10 lakh. This helps you replace your vehicle with the same model without any financial burden.
To process an RTI claim, you’ll need to submit the original purchase invoice, registration certificate, FIR (in case of theft) and claim form. Once verified, the insurer settles the claim based on the invoice value.
RTI works best when your car is less than three years old, as most insurers restrict this cover to newer vehicles where depreciation has a greater financial impact.
When is the Return to Invoice cover applicable?
There are some general situations where the RTI cover is applicable without question.
The Return to Invoice cover applies when your car is stolen and remains unrecovered after investigation. In such cases, you can raise a claim to receive the full invoice value instead of the depreciated amount.
It is also valid when your car suffers a total loss due to a severe accident that leaves it beyond repair. The insurer compensates you based on the original on-road price, helping you replace the vehicle without bearing heavy expenses.
RTI also comes into effect when your car is damaged beyond recovery due to natural disasters such as floods, earthquakes or landslides. Likewise, if your vehicle is destroyed by fire or an explosion, you are eligible for a full payout under this cover.
Note: RTI terms vary between insurers. Always check your policy wordings to confirm specific inclusions, exclusions and claim conditions before relying on the cover.
When is the RTI cover most useful?
Return to Invoice (RTI) cover is most beneficial for those who own a new or high-value vehicle. RTI is especially useful during the first few years of ownership when depreciation is steep and the difference between the car’s purchase price and market value is highest. In such cases, standard insurance only pays the depreciated Insured Declared Value (IDV), while RTI ensures you get back the full on-road price, including taxes and registration.
For luxury cars and high-end vehicles, the cover offers even greater value as the gap between the invoice price and depreciated value can be substantial. Similarly, for financed vehicles, RTI helps clear any outstanding loan, saving you from paying for a car you no longer own.
It’s also a practical choice for people living in theft-prone or disaster-prone areas. In such regions, RTI provides much-needed peace of mind by covering losses from theft, fire or natural disasters.
When is the RTI cover not applicable?
Return to Invoice (RTI) cover comes with specific conditions under which it cannot be used. Understanding these exclusions helps you know exactly when the cover applies and when it doesn’t.
RTI is not valid for minor repairs or partial losses. If your car suffers minor damage like scratches or dents that can be repaired, the insurer will settle the claim under a standard own-damage policy, not through RTI.
It also doesn’t apply to older vehicles. Most insurers restrict RTI to cars up to three to five years old, as the depreciation gap becomes too large beyond this period. Vehicles insured only under a third-party policy are also excluded, since RTI is an add-on available only with comprehensive coverage.
If a loss occurs due to negligence, such as driving under the influence or using the vehicle for unauthorised purposes, the claim will not be honoured. If your vehicle is modified beyond approval or used outside the permitted region, the RTI benefit may be voided.
Note: Exclusions differ across insurers. Review your policy wordings carefully to understand the specific conditions under which your RTI cover may not apply.
How to calculate RTI
RTI in car insurance is a beneficial cover, and it is simple to calculate.
For example, if your car’s on-road price at the time of purchase was ₹12 lakh and its Insured Declared Value (IDV) after two years is ₹9 lakh, the RTI cover bridges this ₹3 lakh gap. In case of total loss or theft, you would receive the original ₹12 lakh instead of the depreciated IDV.
The actual claim amount depends on the car’s invoice value, as recorded by the insurer. Some insurers may also include the cost of accessories or extended warranties if they were part of the original invoice. However, depreciation, voluntary deductibles or unpaid EMIs are not factored into the payout.
How much does Return to Invoice cost?
The cost of an RTI add-on varies based on:
- The car’s make and model.
- The insurer’s premium structure.
Generally, the RTI cost is approximately 10% more than a comprehensive car insurance plan. Remember that insurance providers offer RTI as an add-on for vehicles until they reach a predefined age limit.
Who should opt for a Return to Invoice protection cover?
RTI is particularly beneficial for:
- New car owners: Protects the significant investment made in a new vehicle.
- Vehicles in high-theft areas: Essential for residents owning cars in regions prone to vehicle theft.
- Cars in calamity-prone zones: Provides financial security to individuals owning cars in areas susceptible to natural disasters.
- Expensive cars: Ideal for luxury and high-value vehicles where depreciation is steep.
- Financed car owners: Helps clear outstanding loan amounts in case of total loss or theft.
Validity of RTI
Since the add-on comes with a limited shelf life, you cannot bank on it forever. Usually, after some of your policy renewals in the first few years, your insurance provider will withdraw this benefit.
This is because paying the ‘on-road’ price for an aged vehicle will convert into a financial loss for the insurance provider. The value will, of course, be more than the current market price of the car, especially if the vehicle has experienced significant wear and tear over the years.
That said, when you do raise a claim with RTI, the insurer is legally bound to pay the invoice cover in full. There are really no loopholes for evasion of any one of the charges, including one-road price, registration costs, road tax, dealer’s handling, etc., that can be bypassed in any way.
They may also offer compensation of a specific amount, which is in exclusion to the car’s showroom price as mentioned in the original invoice.
Which of the add-on covers is better: ZERO Depreciation or RTI?
Both Zero Depreciation and Return to Invoice (RTI) cover offers valuable protection, but they serve different purposes. Zero Depreciation covers the full cost of replacing damaged car parts during repairs without factoring in depreciation. It’s ideal for minor accidents and repair claims, as it ensures you do not pay for the natural wear and tear of car parts.
RTI cover, on the other hand, applies only in cases of total loss or theft. It compensates you with the car’s original on-road price, including taxes and registration costs. This makes it more suitable for newer vehicles, high-value cars or those financed through loans, where a complete loss could lead to major financial stress.
If you’ve bought a new car, combining both add-ons in your four-wheeler insurance gives the most comprehensive protection. Zero Depreciation shields you from repair costs, while RTI ensures you recover the full invoice value if your car is stolen or beyond repair.
Things to remember about RTI
Keep these key points in mind to understand how Return to Invoice cover works and when it applies:
- RTI applies only to total loss or theft: The RTI in car insurance’s meaning is that it is only available when your vehicle is declared a total loss or stolen. It cannot be used for minor damages or partial repairs.
- Limited to newer vehicles: Most insurers offer RTI only for cars up to five years old, as the depreciation gap becomes too large after this period. Always check your vehicle’s age eligibility before opting for the add-on.
- Slightly higher premiums: RTI comes with a higher premium than standard cover, but the added cost is small compared to the complete protection it offers in severe loss situations. Confirm that all relevant charges are included in the RTI payout when buying or renewing your policy.
- Keep documents safe: Your original purchase invoice and related paperwork are required to validate an RTI claim, so store them securely.
Conclusion
Now that you have read about what Return to Invoice is in car insurance, it becomes clear that this add-on serves as a valuable layer of financial protection against major losses. If you have recently purchased a car or are planning to buy one soon, adding RTI to your insurance plan can help you safeguard your investment from risks like theft or total damage. It ensures you receive the full on-road value of your vehicle when you need it the most. You can also fill out the form on this page to receive personalised guidance and choose the right car insurance cover for your needs.
FAQs
1. Can one buy RTI cover for an old car?
No, most insurers offer RTI only for cars up to 3–5 years old. Beyond that, the depreciation gap becomes too large, and insurers may limit coverage to IDV-based payouts instead.
2. Does RTI cover accessories or modifications?
Usually, RTI covers only the standard components included in the car’s original invoice. Any aftermarket accessories or modifications need to be declared and insured separately under add-on coverage.
3. Will one get the RTI benefit if the car is stolen but later recovered in damaged condition?
If the insurer has already settled the claim under RTI and paid the invoice amount, ownership of the recovered vehicle shifts to the insurer. If it’s recovered before settlement, a reassessment will be done based on the extent of damage.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.