All You Need to Know About Return to Invoice Cover in Two Wheeler Insurance

The moment you take your bike out of the showroom, you need to have a bike insurance policy, thus the offering. Under most circumstances, the dealership would offer you a standard bike insurance policy. While it might be enough for a few people, it might not offer adequate features for others. If you are among the latter, here is a cover that you might want to include in your two wheeler insurance.

Return To Invoice

When you set out to buy bike insurance online, there are two primary options that you can choose from, a third-party liability policy and a comprehensive policy. While a third-party policy is the bare minimum and just meets the regulations, a comprehensive plan offers much better coverage. But it has its own limitations.

Consider this, if your bike were to be stolen and you place a claim request, the insurer will compensate for the loss after completing its process. However, it would not compensate for the actual price of the bike that you paid while buying. Rather they will offer you an amount that factors the depreciation cost. What you would receive then is the IDV or Insured Declared Value of the vehicle. It is commonly referred to as the current market price of your bike.

But, if you buy a Return to Invoice cover along with the main policy, things will be different. If you have the return to invoice cover, the insurer will compensate you with the price mentioned in the invoice, ensuring no loss for you. In the event that your bike gets stolen or meets with an accident and is deemed beyond repair, the cover would come in handy.

There is a small clause when it comes to returning to invoice cover though. The plan is usually offered to individuals whose bike is new or relatively new. If your bike is a few years old, your insurer might not offer the cover. The simple reason being once the bike gets old, ignoring the depreciation amount can get a bit difficult for the insurers.

Coverage

Since it is an add-on when you buy two wheeler insurance, it is important to be aware of the coverage that it offers. While these are some of the most common conditions, there might be a slight variance when it comes to different insurers. Here are the events when it will have your back.

• Theft of a bike.
• Total Loss of a bike.
• Accidents that insurers declare as a total loss or CTL (constructive total loss)

Not Covered

Since it is a part of a two wheeler insurance policy at the end of the day, there are quite a few conditions where the policy might not work on your behalf. You should be aware of these exclusions so as to reduce any chances of claim rejections.

• In the event of a theft case, until and unless the investigation is complete, the insurer might not compensate.
• If your bike is more than 3 years old, you might not get an option to add a return to invoice cover.
• If your claim for theft or total loss is not permissible as a part of the policy, merely the return of invoice cover will not ensure compensation.
• You cannot use the cover for smaller claims or repairs. 

When to opt

Since the add-on offers restricted coverage, the most obvious question that might come to your mind is, when should I opt for it? Well, here are some of the most common scenarios where you should opt for it.

• If your bike is less than 3 years old or brand new, you can opt for the cover.
• As a buyer, if you feel that your parking lot is not the safest, this cover would come in handy.
• If you stay in an area or locality that is infamous for theft, this cover would make a lot of sense.
• Lastly, if you have an expensive bike or sports bike, the cover would be ideal.

You can add a return to invoice cover while opting for bike insurance online. When you buy bike insurance online, you can opt for a comprehensive plan that is not too burdensome on your wallets and then opt for a return to invoice cover.