Team AckoSep 20, 2021
A comprehensive bike insurance policy will cover the damages to your bike and losses to the third party. However, what happens if your bike is stolen or is completely damaged due to a fire? The Return to Invoice in two-wheeler insurance is an effective add-on cover through which ACKO will pay the invoice value of the bike.
Through the RTI cover in two-wheeler insurance, ACKO will pay the difference between on-road price of your bike and the Insured Declared Value (IDV) declared in the policy. In case your bike is stolen, lost or damaged beyond repair, we will pay the invoice value of the bike and recover almost the entire cost of the bike, including registration charges and road tax.
Your bike insurance should provide all-around coverage. The RTI add-on enhances the standard comprehensive plan to cover your losses in case your bike is beyond repair or is lost/stolen. Here are the advantages of the RTI in bike insurance and pays the entire invoice value of your bike in the following situations:
Get the entire invoice value (purchase) in case your bike is stolen or lost.
Pays the invoice value in case your bike is totally damages and cannot be repaired due to accidents, fire, earthquakes, floods, riots, vandalism, etc.
Coverage includes road tax and registration charges of the bike.
Peace of mind knowing your bike is well-protected in case of a total loss.
In case your bike is totally damaged due to an accident, you can claim a maximum of the Insured Declared Value (IDV), which is essentially the approximate current market value of your bike. However, the RTI cover bridges the gap between the invoice value and the IDV of your bike. The RTI add-on gets you the on-road price of the bike, thereby, eliminating the depreciation factor. If your bike is totally damaged or is stolen, you get back the entire invoice value through the RTI add-on cover.
The Return to Invoice Cover helps when you want to recover the entire cost of the bike in case of a total loss. The RTI cover is applicable in bike insurance in the following instances:
Total loss due to natural and man-made calamities.
Damages are beyond repair.
Following the reasons when ACKO is not liable to provide coverage under the Return to Invoice cover in two-wheeler insurance:
The stolen or lost bike is recovered within 90 days of the theft.
The local police have not issued the First Information Report (FIR).
Any damage or loss to any non-built-in or non-embedded electronic/electrical and non-electronic/electrical accessories not insured under the insurance policy.
You were riding the insured bike without a valid driving licence.
You were riding the insured bike in an intoxicated state.
The insured vehicle was being used for illegal activities.
The insured bike was being used for commercial purposes when it was insured for personal use.
The cost of a new bike includes the ex-showroom price, road tax and registration charges. However, when you raise a claim for a total loss, you only get the IDV or the approximate current market value since depreciation is taken into consideration. You end up receiving only part of the money that you spent on buying the bike. However, the RTI cover will pay the on-road price of the bike (ex-showroom price, road tax and registration) and the IDV. Effectively, you get back the money that you spent on buying your bike.
The Return to Invoice cover is an additional option when you buy comprehensive bike insurance. For a nominal additional premium, you get complete financial coverage in case of a total loss. The cost of the RTI cover depends on the date of manufacture, model and the brand of the vehicle. The Return to Invoice for a two-wheeler can cost you about 10% of the comprehensive insurance policy you have opted for your bike.
All should consider adding the RTI cover for two-wheelers; however, it is important especially for the following people:
People who live in an area where theft is common.
Those who own a new bike.
Those who do not have a safe parking space.
People who travel long distances and are exposed to road accidents.
People who love their bike.
The Zero Depreciation for bike or Bumper to Bumper add-on cover pays only the ex-showroom price of the bike in case you have chosen the IDV as per the ex-showroom price. However, the Return to Invoice pays the on-road price. Ideally, it even pays the registration charges and the road tax. Going that extra mile certainly pays off especially in case of a total loss.
Also, read: Two Wheeler Insurance – Add On Covers
Consider the following guidelines when you buy the Return to Invoice cover for your bike:
It provides financial protection for your bike against theft.
It provides complete reimbursement compared to the IDV.
It provides financial protection in case of a total loss to your bike due to an accident.
It offers you peace of mind knowing that it will pay the on-road price of the bike.
The RTI in bike insurance is an essential add-on to the comprehensive policy and here are a few frequently asked questions about the add-on cover:
1) What is the validity of the Return to Invoice cover for bike insurance?
Add-on covers are usually for a period of one-year which you buy along with a comprehensive insurance policy.
2) Does the Return to Invoice cover only apply to the total damage to the bike?
The RTI cover for bike insurance also covers theft or if the insured bike is lost.
3) Why should I choose Return to Invoice or Invoice Protection for my bike insurance?
The Return to Invoice cover is essential for new bikes because it will compensate you with the on-road price of the bike in case it is stolen, lost or damaged beyond repair. Also, in case you stay in an area where thefts are common, then the RTI will help you to recover the entire cost of buying the bike.
4) Are accessories covered under the RTI cover?
No, the RTI add-on does cover accessories. However, you can include them through the Personal Belongings add-on covers.
5) What are the exclusions of the RTI cover in two-wheeler insurance?
You can refer to the above-mentioned list of exclusions under the RTI cover in bike insurance.
6) When can I buy the Return to Invoice add-on for my bike?
You can purchase the RTI cover while buying a new bike insurance policy and while renewing the existing policy.
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