Buying a car is one of the lifelong desires of many people. If such a car is stolen, think a little about the state of mind of the victim. What if the car is even yours? The situation is a bit difficult. However, can you believe that there is a way to recover from this and buy a new car without spending a penny?. Yes, you can buy car insurance. A return to invoice add on cover (RTI) policy will help you buy a new stolen car.
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RTI will cover the entire loss of the stolen car under the insurance policy. In simple terms, RTI pays an additional fee to cover the gap between the IDV value known as the Insured Declared Value and the purchase price of the car. However, with normal insurance cover, you only get the Insured Declared Value (IDV) of the car.
Insurance value of the car
The current market value of the vehicle is calculated taking into account annual depreciation. Also, the insurance covers everything on the final invoice of the car including road price, road taxes, registration cost & dealer handling costs.
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Who needs RTI cover for car?
* If you don’t have a reliable parking space around your house and you reluctantly park your car in an unsafe area, it is essential that you carry RTI.
* RTI insurance will cover those who have high depreciation of the car.
* This insurance can be taken if the new car is less than 3 years old.
* Expensive and luxury cars are highly recommended to include this cover in their car insurance policy. That’s because the risk of theft is high for these expensive cars.
How to claim RTI Insurance?
You should only make a claim if someone steals your car. First report the claim to the police authorities in your area.File an FIR. This is necessary to establish that the car was not taken due to your negligence. After completing the above duties, approach the car insurance provider.
Inform the insurer of all the details of the incident like time, date, place etc. Also, show the FIR report. An insurance claim may be rejected if you do not inform the police first. Also, keep the car keys with you. Because it is proof of your stolen car. It can be proved that it was not caused by negligence. The insurer will ask you to provide a list of documents for claim approval.
Verification of the claim will be arranged by the company representative. The claim is verified and payment is allowed. Since you have invoice insurance, the insurer will pay you the purchase price of the lost vehicle.
Example of Claim
Mr. Karthikeyan buys a new car for a purchase price of Rs.21 lakh. His car is stolen in the 3rd year of the policy. Karthikeyan immediately went to the police station and filed a complaint, after which he took the FIR and approached the insurance company. As he qualifies for an insurance claim, he will get the full amount for the new car from the insurance company.
Mode of Insurance
There are three types of insurance coverage for stolen cars.
* Full on-road value of the insured car will be reimbursed including specified expenses.
* Payment of road price including first time registration fee and road tax as printed on invoice/bill.
*Ex-showroom prices plus additional percentage payment.
Which companies offer return to invoice cover?
In India, there are many companies that offer ‘return to invoice’ option to the insured car owner. Some famous companies are mentioned below…
* ICICI Lombard
* Bajaj Alliance
* Reliance
* TATA AIG Insurance
* Bharti Axa
* HDFC THEREFORE
* Oriental Insurance Company
Annual premium rates of RTI
The premium of RTI insurance depends on the price of the car. The cheaper the cars, the higher the annual premium.
The price of the car is premium as per the price list
1000 for less than 5 lakhs
5 lakh to 10 lakh Rs. 2000
Rs.10 lakh to Rs.15 lakh Rs.3000
(Note: These are estimated prices and vary from company to company)
RTI cannot be used for all this
* This cover is not valid for cars older than 3 years.
* Cover does not apply to minor damages and repairs to your car.
* Damages caused by explosion and fire, accidental accident, collision are not covered under RTI.
* Additional cosmetic expenses incurred by you after taking over the car cannot be claimed under this insurance.
* If the FIR is not issued or submitted to prove that the car is stolen, the claim will be rejected.
* This insurance is not applicable for cars discontinued from the market or cars of closed companies.
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