Sameer lost ₹5 lakh on his stolen SUV: How RTI cover could have saved him

Your Car Insurance may not be enough: Return to Invoice is the smart Car insurance add-on that all new car buyers need.

When Sameer ( 41) bought his dream SUV in  January 2024 for ₹18 lakh on-road, he was thrilled. But just 18 months later, the car was stolen from outside his house in South Delhi. The insurer reimbursed only the Insured Declared Value (IDV), which had dropped to about ₹13 lakh due to depreciation. The shock came when Sameer revisited the showroom — the same model now cost over ₹20 lakh because of price hikes. Sameer was suddenly short by ₹8 lakh, despite having “comprehensive insurance.”

 

This is exactly where Return to Invoice (RTI) cover could have saved him.

 

" When I bought my brand-new hatchback in January 2024, I was ecstatic. I had taken the car insurance from Kia itself, which covered everything, and included the necessary add-ons." But a year later when it came to renewing his car insurance, he opted for third-party insurance and left out a small add-on called Right to Invoice (RTI) insurance. “The third party agent told me it was optional, and I thought—why spend extra?” he recalls. Three months later, when his car was stolen, the regret hit hard.

 

The insurer paid him the Insured Declared Value (IDV)—which was about 30% lower than the actual cost of the car he bought just a year ago. While he paid Rs 18 lakh for this Kia Seltos, the insurer paid him 70% of that amount, which is Rs 13 lakh. With rising car prices, the payout was nowhere near enough to buy the same model again. That’s when he realized RTI insurance could have saved him a huge financial gap.

 

What exactly is Return to Invoice (RTI) cover in car insurance?

Return to Invoice (RTI) coverage is a valuable add-on to car insurance that offers enhanced financial protection in the unfortunate event of your vehicle's total loss or theft. 

 

"Instead of receiving the depreciated market value, the customer is reimbursed with the full invoice price of a brand-new car of the same make and model. In essence, RTI ensures a “new-for-old” replacement without any deductions, allowing you to recover the complete cost of your vehicle as if you were buying it fresh from the showroom," said Subhasish Mazumder, Head – Motor Distribution, Bajaj Allianz General Insurance.

 

Return to Invoice (RTI) coverage is especially important for new car buyers because it ensures complete financial protection. When someone invests in a brand-new car, the last thing they want is to settle for a depreciated value if something unfortunate happens. RTI addresses this concern by offering a full invoice value, allowing the customer to receive the full amount, including registration and insurance costs.

 

In what situations does RTI provide maximum benefit (e.g., total loss, theft)?

"Return to Invoice (RTI) Cover gives maximum benefit if your car is stolen or completely damaged in an accident. It helps you get the full invoice value of the car, so you can buy a new one of the same type without any loss. RTI ensures you don’t lose money in case of total loss or if it gets stolen," said Mazumder.

 

RTI is particularly useful in:

 

Theft – when your car is stolen and cannot be recovered.

 

Total loss – when an accident damages the vehicle beyond repair.

 

Rising car prices – in today’s market, car prices often go up year after year.

 

For example:

 

On-road price (invoice value): ₹12 lakh

 

IDV after 2 years: ₹9 lakh

 

Car is stolen →

 

Without RTI: Claim settled at ₹9 lakh.

 

With RTI: You receive ₹12 lakh, including taxes and registration, avoiding a ₹3 lakh shortfall.

 

Who Should Opt for RTI?

 

• New car buyers (up to 3–5 years old vehicles) – since depreciation is steep in early years.
• Urban car owners – especially in cities with high accident or theft risk.
• Buyers taking car loans – RTI ensures that even if the car is stolen or totaled, you’re not left paying EMIs for a vehicle you no longer own.

 

Mazumder clarifies, “RTI add-on cover is usually available for cars up to 5 years old. Every customer who buys a brand-new car should definitely opt for it.”

 

How is RTI Different from Other Covers?

 

Standard Comprehensive Policy → Pays only depreciated market value (IDV).

 

Zero Depreciation Cover → Ensures parts are replaced without depreciation deduction during repairs, but still doesn’t cover full invoice value.

 

RTI Cover → Reimburses the entire invoice amount, including on-road costs, in case of total loss or theft.

 

As Mazumder puts it, “RTI goes a step further by reimbursing the entire invoice cost of the car, including insurance premiums and registration charges, which are usually excluded in other policies.”

 

Cost of RTI

 

RTI typically adds 8–10% to your overall premium. For instance, if your insurance premium is ₹25,000, RTI may add just ₹2,000–2,500. Given the financial protection it provides, this small extra spend can be a lifesaver.

 

Now, lets analyse both the policies taken by Sameer. The first policy is the one opted for while buying the car, and the second is at the time of renewal. 

 

1. Tata AIG Bundled Auto Secure (2023)

 

Coverage Type: Comprehensive (Own Damage + 3-year Third Party).

 

Premium Paid: ₹35,408.

 

IDV (Insured Declared Value): ₹14.43 lakh for a Kia Seltos (2023 model).

 

Add-ons Selected: Key replacement, emergency transport, tyre secure, consumables, engine secure, depreciation reimbursement, Return to Invoice (RTI), etc.

 

Key Point: RTI add-on was taken, costing ₹1,732.69 (small fraction of premium). This ensures that in case of theft or total loss, the insurer reimburses the entire invoice value including road tax, registration, insurance — not the depreciated IDV.

 

 This policy is well-rounded: it covers third-party liability, own damage, and key add-ons like RTI, which protect against depreciation shocks.

 

2. Zurich Kotak Car Secure – OD Only (2024)

 

Coverage Type: Own Damage Only (third-party liability covered separately with Tata AIG, valid till 2026).

 

Premium Paid: ₹12,611.

 

IDV: ₹12.99 lakh (lower than Tata AIG’s ₹14.43 lakh because IDV reduces with age/depreciation).

 

Add-ons Selected: Depreciation cover, consumables, roadside assistance, key replacement.

 

RTI Option: Available but not selected in this case.

 

Key Point: Being an “OD-only” policy, it’s cheaper, but without RTI, compensation is limited to the depreciated IDV in case of theft or total loss.

 

This policy is cheaper, but exposes the buyer to financial risk if the car is stolen or written off, since payout = IDV, not invoice value.

 

So essentially, when Sameer renewed his Kia Seltos insurance in 2024, he switched from Tata AIG’s comprehensive plan with RTI to Zurich Kotak’s OD-only policy without RTI. On paper, the move saved him over ₹22,000 in premium (₹35,408 vs ₹12,611).

 

But here’s the catch:

 

When the car was stolen in 2025, Kotak reimbursed only the IDV — about ₹12.99 lakh.

 

If Sameer had RTI (like in his earlier Tata AIG policy), he would have received the full invoice value.

 

 Up to how many years of car age is RTI typically offered?

RTI add-on cover is usually available for cars up to 5 years old. It helps recover the full invoice value, including registration and insurance, in case of total loss or theft. Since older cars lose value over time, RTI is ideal for new vehicles, offering financial protection.

 

"IRDAI has prescribed a depreciation % in the vehicle value based on year of purchase/registration of the vehicle i.e, first year (year of purchase) IDV is 5% less of vehicle value, second year IDV is 20% less of the vehicle value, then 30%, 40% and till 5th year, 50% of the vehicle value got depreciated. So, in the first year or for new vehicles, if RTI is opted as an add-on cover in the event of loss, then full vehicle invoice value along with taxes and registration charge is being covered," said Sunny Bhatia, Senior VP - Retail, Turtlemint, an innovative insurtech company.

 

How does RTI compare to other add-ons like engine protection, consumables cover, or zero-dep in terms of value for money?

 

RTI (Return to Invoice) stands out as the most value-for-money add-on compared to other options, such as engine protection, consumables coverage, or zero-depreciation. 

 

"While other add-ons primarily cover repair costs, often adjusted for depreciation, RTI goes a step further. In cases of total loss or theft, RTI ensures the customer receives the full invoice value of the car, allowing them to replace the old or damaged vehicle with a brand-new one of the same model and variant. This means the customer is not just reimbursed for repairs but fully compensated for the entire vehicle, making RTI a superior financial safeguard," said Mazumdar.

 

What are the most common misconceptions car buyers have about RTI?

One of the most common misconceptions about RTI (Return to Invoice) is that many car buyers are simply unaware of its existence or assume it’s unnecessary. Some individuals avoid it due to false perceptions, thinking that standard insurance is sufficient, or that RTI is too expensive. 

 

Are there any exclusions or fine-print conditions people should be aware of?

"When choosing car insurance add-ons like Return to Invoice (RTI), it is essential to be aware of specific conditions that may impact your claim experience. While RTI doesn’t involve hidden fine print, one key point to note is that insurers typically reimburse the cost of a car with equal configuration. If a customer chooses a higher variant or upgraded model, they will need to bear the additional cost beyond the original configuration," explained Mazumder.

 

The Bottom Line for Car Buyers

 

• If you own a new car (up to 5 years old), RTI is one of the smartest add-ons.
• The cost (₹1,500–2,500 typically) is small compared to the potential loss (₹1–3 lakh depending on car value & depreciation).
• If you’re budget-conscious and driving an older car (>5 years), RTI may not add much value — in that case, OD-only with basic add-ons may be enough.