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Role of Return to Invoice Cover in Car Insurance

By Finserv MARKETS - Aug 16,2019
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Role of Return to Invoice Cover in Car Insurance

Return To Invoice Cover

Today life is unpredictable one needs to be careful while driving on the road in order to avoid accidents. Accidents can affect you mentally, physically, and financially too. Well, if you do not have a car insurance, then it is going to cost you a fortune.

However, just paying the necessary car insurance premium amount will not protect your vehicle from mishaps. For that, you will also require an adequate add-on benefit like Return to Invoice along with your basic car insurance policy.

Return To Invoice Meaning

Still unclear about the meaning of return to invoice cover? Let us consider an example that will help you understand the basics of Return to Invoice.


Imagine you recently purchased a brand-new car which was stolen from your parking lot. In such a situation, you will first rush to your local police station to file an FIR against the loss. Once the FIR is lodged, make sure that you are informing your insurance provider.

After the claim registration, you might be assured of getting the full value of your car (depending on your insurance cover). However, you have to understand that you will not be receiving the full compensation on your loss. Instead, your insurance provider will compensate with an amount that is almost equal to the Insured Declared Value (IDV).

How Much Reimbursement Can You Avail?

When you purchase a vehicle, your insurance provider will decide upon a IDV for your car. The IDV is calculated by applying the depreciation from the invoice value. In other words, IDV is nothing but the current market value of your vehicle or the maximum amount that you can claim on your motor insurance in case of complete loss.

When Is Return to Invoice Cover Applicable?

The Return to Invoice comes into picture when there is a gap between the IDV and the invoice value of your vehicle. It is an add-on benefit offered by many insurance providers that allows you to gain the full amount of the loss you incurred.

To avail this cover, you will have to pay an additional on your premiums. Generally, Return to Invoice will cost you 10% more than your underlying car insurance policy. It is, however, noteworthy that Return to Invoice cover can be availed only for vehicles of certain age.

Remember, you do not have to utilize Return to Invoice cover for minor dents in your vehicle. The primary purpose of this cover comes in handy in case of major accidents or total loss. It is useful in case your car gets stolen, or the damage is beyond repair.

How Does Return to Invoice Works For You?

Any regular car insurance policy will not claim the entire amount of the vehicle or the kind of money you invested when purchasing it.

For instance, if you apply the depreciation rate of 5% on the car that is six months old from the day of purchase, the rate will increase to 10% upon completing a year. In such a situation, imagine the amount of money you will lose on your older vehicle.

This is when Return to Invoice cover comes to your rescue. You do not have to worry about the depreciation rate as your insurer will pay the full amount of your vehicle.

The Bottom Line

Certain add-on benefits that come along with necessary motor insurance policies are genuinely beneficial in the long run. Return to Invoice is one such add-on cover that you can consider buying with your car insurance policy.

Is your car insurance policy about to expire?

With Car Insurance from Finserv MARKETS, you can renew the policy online. The car insurance policy renewal process is a simple three step process. All you have to do is provide your car details, choose an appropriate insurance plan and make payment online. Also, you can benefit from features like cash-free servicing and round the clock car roadside assistance.

So, why wait? Apply for a Car Insurance with Finserv MARKETS, today! You can also check the premiums for car insurance plans available on Finserv MARKETS by using the car insurance calculator. The tool not only provides a quote but also allows you to compare quotes offered by insurers in India. Based on the results, you can then choose a car insurance plan that is affordable and fulfils your needs.

To know more on car insurance in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522