RTI in Bike Insurance: A Comprehensive Guide

Posted on: May 29, 2024 | 3 mins | Written by: HDFC ERGO Team

RTI in Bike Insurance: A Comprehensive Guide

Comprehensive Guide on RTI in Bike Insurance

When you purchase a new bike, it becomes a priority to protect it from all possible damages. Given the road conditions and the rise in theft, your two-wheeler might become a victim of unforeseen circumstances. Although these events are beyond our control, what we can secure is the coverage amount.

RTI steps in as an optimal add-on coverage to your bike insurance plan. RTI in bike insurance stands for return to invoice cover that pays you the amount mentioned in the invoice. The amount is higher than the IDV because it includes the bike’s market price, road tax charges, registration charges, etc.

What is RTI in bike insurance?

RTI or return to invoice is an add-on to the comprehensive bike insurance plan. A regular insurance plan settles the claim at the insurance-declared value of the bike, which is lower than the invoice amount. With RTI, the policyholder receives the original purchase amount equivalent to the on-road price. It is important to note that RTI only applies when the insured bike is completely non-functional or non-traceable and becomes a total waste.

Inclusions and Exclusions in RTI

Inclusions

Complete loss due to theft:

If the two-wheeler is stolen and the police can't trace it, you can file an RTI and receive the invoice amount.

Complete loss due to accident:

In catastrophes, fires, accidents, etc, where the bike gets destroyed, the owner can file an RTI.

Exclusions

Minor damages:

Small dents, scratches, malfunctions of a specific part, etc., are repairable, so RTI is not involved.

Third-party liability policy:

RTI does not cover damage to third-party vehicles caused by your bike. This add-on does not include coverage for third party bike insurance.

Age of the bike:

The general timeframe to avail of the RTI add-on cover is within 3-5 years from the time of purchase. The duration differs from insurer to insurer.

How do you file an RTI under bike insurance?

Since RTI provides comprehensive bike insurance online, it also has an extensive claim process. The process involves legitimate documents of FIRs and accidents to confirm the non-functionality of the bike. The following steps are the complete process to file a claim under RTI:

Step 1: Inform the insurer

After the incident, your first step should be to inform the insurer. Call customer service or visit the branch office and explain the nature of the incident, I.e. details like the time and location of the theft or accident.

Step 2: File a FIR

Register a complaint at the nearest police station regarding the theft or road accident. The copy of the FIR plays a vital role in supporting your insurance claim.

In case of natural disasters, fire, etc, get the bike analysed in a garage to confirm that the vehicle is beyond repair.

Note: RTI in bike insurance is not applicable if the bike gets recovered within ninety days of theft.

Step 3: Submit the claim form and necessary documents

The insurer will give you a claim form, or you can access it on their official website. Fill the form thoroughly with the correct information. The documents that are required are:

• Driver’s license

• PUC certificate

• FIR

• Registration certificate

• Original invoice

• Photographs of the damaged bike, if available

Step 4: Inspection

The insurance company appoints a surveyor to assess the damage or verify the theft of your bike. If needed, provide them with additional information. The more information you provide, the stronger your claim will become.

Step 5: Claim settlement

After the documents are submitted, the insurer examines the provided information. If the claim satisfies the scenario for RTI coverage, it is approved. The invoice amount minus any deductible mentioned in your policy is transferred to your bank account after the approval.

Following the steps mentioned above, you can file the claim smoothly without any hassle.

Who should invest in RTI add-on?

The RTI add-on costs nearly ten per cent more than the standard insurance plan, which increases the premium amount. So, it is essential to know your requirements and surroundings. The people who should opt for this add-on are:

• People who live in a locality where theft happens frequently.

• The ones who ride long distances daily and are prone to accidents.

• Bike owners who live in areas that frequently experience extreme weather conditions. RTI is applicable if a flood or a cyclone destroys the bike.

• People who have bought a new bike.

• Lastly, bike owners who do not have a parking space have to park outside their houses.

The mentioned points are the critical scenarios where RTI in bike insurance becomes beneficial and essential. Be truthful and transparent throughout the claim process. Providing false information can lead to claim rejection.

Points to consider while opting for RTI add-on

RTI add-on makes the insurance more efficient, but it should be opted after considering a few points. The key aspects to watch out for before purchasing an RTI add-on are as follows:

IDV vs invoice price:

The insurer fixes the IDV or insured declared value, whereas the invoice price is the on-road price. If the difference between the two is minimal, then RTI is unnecessary.

Premium prices:

An add-on increases the premium price. Compare the add-on expense among different insurance companies and find a cost-efficient offer.

Claim settlement ratio:

Divide the number of claims settled by the total number of claims to get the claim settlement ratio. Choose an insurer with a high ratio to ensure adequate claim settlement.

Customer service:

Accidents can happen anytime, so it is essential to have customer support around the clock.

Analyse the mentioned factors carefully and only then come to a conclusion.

Conclusion

RTI is an efficient add-on to your standard bike insurance plan. It offers complete coverage at the time of total loss of the vehicle. Although it is a great option for building financial security, you should always understand your requirements before investing in RTI. Understanding the inclusions, exclusions, claim process, and cost factors of RTI assists in making an informed decision about whether to add it to your bike insurance policy. It is important to remember that RTI add-on is not a compulsion, but it is very beneficial. So, decide today and step towards building a financial pillar for your bike.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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