A comprehensive policy covers loss or damage to your vehicle and third party. It covers against the risk of loss or damage caused to your bike due to fire, explosion, self-ignition or lightning, earthquake, flood, burglary, theft, riot, strike, etc. Moreover, it covers third-party liability loss or damage to a third person or property that may incur due to the insured bike.
However, there are certain conditions, for instance, Total Loss of bike, in which case you need to opt for an add-on cover to maximize the coverage provided under a comprehensive policy.
Invoice Protection is an add-on cover that is beneficial in the case of Total Loss of bike.
What is Invoice Protection Cover?
Invoice Protection Cover helps you to claim Ex-showroom plus other additional charges, in case of Total Loss, i.e. theft or total damage. It helps you to get reimbursed the gap between the Insured Declared Value (IDV) and the additional charges that you pay at the time of bike purchase – registration charges, road tax, and other charges.
In case of Total Loss, an insurance company will pay Insured Declared Value (IDV) of your bike under a comprehensive policy. Whereas, with Invoice Protection Cover, you can claim a total Ex-showroom + Registration charges + Taxes, instead of just IDV.
Why do you need an Invoice Protection add-on cover?
IDV is the depreciated amount of the Ex-showroom price and does not include registration charges, on-road tax and other charges.
The table below shows how IDV is dependent on Ex-showroom price of your bike and vehicle age.
|Two Wheeler Age||IDV (% of Ex-showroom)|
|< 6 months||95%|
|6 months to 1 year||85%|
|1 year to 2 years||80%|
|2 Years to 3 years||70%|
|3 years to 4 years||60%|
|4 years to 5 years||50%|
|5 years+||To be negotiated|
The IDV after one year and till two years is 80% of the Ex-showroom price. That means, if you lose your bike during this period you can’t claim more than IDV (80% of Ex-showroom price).
Here’s where an Invoice Protection Cover can help you.
The Ex-showroom price of Royal Enfield Classic 350 in Mumbai is Rs. 1,36,500.
While RTO + Road Tax + Other charges will cost Rs. 14,300 (excluding insurance).
The on-road price of Royal Enfield Classic 350 in Mumbai is Rs. 1,50,800 (excluding insurance).
Now, if a bike gets stolen after a year, then the insurance company will pay upto IDV i.e. Rs. 1,09,200 (80% of Ex-showroom price).
But with an Invoice Protection Cover, you can claim Rs. 1,50,800.
Benefits of Invoice Protection Cover
|Without Invoice Protection||With Invoice Protection Cover|
|Ex-showroom price||Rs. 1,36,500||Rs. 1,36,500|
|IDV after 1 year (80% Ex-showroom)||Rs. 1,09,200||Rs. 1,09,200|
|On Road price (RTO + Road tax + others)||Rs. 14,300||Rs. 14,300|
|Total price (excluding insurance)||Rs. 1,50,800||Rs. 1,50,800|
|Maximum Claim Amount||Rs. 1,09,200||Rs. 1,50,800|
So an Invoice Protection Cover helps you to get invoice price of your bike in case of Total Loss.
Acko offers an Invoice Protection add-on cover on the Comprehensive Bike Insurance Policy.
Invoice Protection add-on covers:
- Registration charges
- Taxes (Road Tax, Octrois, etc.)
With the help of this cover in your new bike insurance policy, you can purchase a brand new bike without an additional financial burden on your pocket. Thus, making you worry-free.
Who should opt for an Invoice Protection cover?
- Someone who owns a brand new bike
- Someone who stays or works in a locality where theft is quite frequent
- Someone who does not have a secure bike parking facility
- Bike is not over 3 years of age
- Someone who loves his bike