Return to Invoice vs Zero-Depreciation Add-on in Bike Insurance
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Home / Two-wheeler Insurance / Return to Invoice vs Zero-Depreciation Add-on in Bike Insurance
A motorcycle is more than just a mode of transport, it offers daily convenience, freedom, and, for some, a professional or passionate pursuit. Given its significance, securing a comprehensive bike insurance plan is essential. To enhance protection, many riders opt for additional coverages known as add-ons, which provide extended benefits at an extra cost. Among these, Return to Invoice and Zero Depreciation are two popular choices.
In this blog, we will explore what each add-on offers, understand Return to Invoice vs Zero-Depreciation Add-on, and guide you in choosing the one that best suits your needs.
What is the Zero-Depreciation Add-on in Bike Insurance ?
The Zero Depreciation add-on in bike insurance ensures you receive the full claim amount without factoring in depreciation. Normally, insurance companies reduce your bike’s Insured Declared Value (IDV) over time, lowering your claim payout. With this add-on, however, the insurer covers the complete cost of parts replacement at current market value. Though it comes at an extra premium, it significantly boosts claim benefits. For example, Jake, with this add-on, gets full repair coverage after an accident.
What is the Return To Invoice Add-on in Bike Insurance?
The Return to Invoice add-on or RTI ensures that in case of total loss or theft of your bike, you receive the full purchase price, including taxes and registration costs, not just the depreciated Insured Declared Value (IDV). For example, if Paul’s bike is stolen after two years, his RTI add-on will help him claim the complete invoice amount paid at purchase. This cover offers peace of mind when facing irrecoverable damage or theft.
Key Difference between RTI Add-on vs Zero-Depreciation Add-on
The Zero-Depreciation Add-on and Return to Invoice might seem similar, but they significantly vary. Understanding these differences is important to make the right call while purchasing your bike insurance. Read the table below to know its differences:
Features | Zero-Depreciation Add-on | Return To Invoice Add-on |
Meaning | This additional coverage in a comprehensive plan enables the policyholder to raise claims and receive the actual amount of parts rather than their depreciated value. | A Return to Invoice is an add-on that leverages the policyholder to raise the original invoice value of their bike along with registration and taxes in case of a total loss of their bike. |
Availability | This add-on is available for bikes up to 5 years after the registration date. | An RTI add-on is available for bikes up to 3 years of age after the registration date. |
Coverage | This add-on covers depreciation costs and provides you the full value of your parts at the time of claim in place of the depreciated value. | The Return to Invoice add-on lets you receive the original invoice value, including the registration costs and taxes. However, you would get a depreciated value of IDV without this add-on. |
Exclusions | This add-on does not cover consumables such as engine oil, nuts and bolts. | This does not include the costs of additional modifications or accessories on top of the original invoice price. |
Premium | When comparing the costs in most insurance companies, the zero-depreciation add-on is found to be comparatively more expensive. | The Return to Invoice add-on is comparatively cheaper than the Zero-Depreciation add-on. |
Who should buy it? | It offers coverage for bikes up to the age of 5 years. So, it is best to buy it within the date of purchase up to 5 years of age. | This add-on is available for bikes of age 3 years or less. This makes it viable for people having a bike with the salem age criteria. |
Which One Should You Choose? | Zero-depreciation or RTI Add-on
You never know when you get into an accident or how impactful it can be. Bikes get stolen even from people's homes and garages. So, knowing the add-ons that will be useful later cannot be understood initially. However, there are a few things that might help you decide your purchase if you have decided to buy anyone.
If your car is aged more than 3 years but less than 5 years, you can buy a Zero-Depreciation add-on, as RTI is worthless after 3 years.
If your locality has numerous reports of stolen items, you must have an RTI add-on.
Check for rash drivers in your locality, if you find many, you must buy a Zero-Depreciation add-on.
If you drive many kilometres in a day, your parts might get old faster, it is advisable to choose the zero depreciation add-on in such cases.
Final Thoughts
Add-on coverage for bikes is available at very low prices which will have negligible impact on periodic premiums. Despite its low cost, it offers some interesting additional coverages that can be handy in times of emergency. A Zero-Depreciation Add-on leverages the policyholder to get the whole price of the parts required. This saves out-of-pocket costs.
Whereas, an add-on like return To Invoice, safeguards a policyholder from extreme financial losses and provides the original value of that bike. This can help that person to get a new bike with minimum out-of pocket costs.
Frequently Asked Questions
1. Can we add Zero-Depreciation Coverage with a Comprehensive Plan?
Yes, this add-on or any other add-on is typically available with a comprehensive plan only.
2. Are all parts covered under the Zero-Depreciation add-on?
This additional benefit is available for most parts. However some exclusions include, tubes, batteries, tyres and other regular wear and tear items.
3. What does an RTI add-on cover?
RTI covers the depreciation on insured value and offers the original invoice price of that bike including registration costs and taxes.
4. Up to what age is the RTI add-on available?
Insurance companies provide RTI up to 3 years after registration.
5. Up to what age is the Zero-Depreciation add-on available?
Insurance companies have a set depreciation rate up to 5 years from registration. Hence, this add-on offers its benefits to bikes up to 5 years of age only.
Written by
Nikhila PS
Senior Content Editor
Nikhila is a content creator with 6+ years in EdTech and motor insurance, turning complex policies into clear, engaging content. She enjoys exploring digital trends, social media, and art while planning her next short escape.
Reviewed by
Rekhit Singh Kaushal
Senior Director - Motor Underwriting
Rekhit Singh Kaushal is Senior Director at ACKO, a leading digital motor insurance provider in India. With deep expertise in insurance strategy and innovation, he brings trusted insights on car and bike insurance to help drivers stay protected.
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