The name may be Comprehensive Motor Insurance, but if you haven’t already realised, insurance payouts in the event of total loss or theft never matches what you paid for the vehicle. The payout, which takes into account depreciation, might not even be enough to offset the hire purchase loan, which is extra bad news for the already grieving owner.
This is where Return To Invoice (RTI) insurance, now made available by Mercedes-Benz Services Malaysia, comes in handy. RTI insurance – purchased on top of comprehensive motor insurance – essentially bridges the regular insurance settlement amount (current market value of the car) and the original purchase price of the car. RTI insurance covers total loss, theft and fire.
With RTI coverage, you will now have the same amount of money to spend on a replacement car as you originally spent on the car that was damaged/stolen. The above graphic by Mercedes-Benz Services Malaysia explains it clearly.
RTI insurance, also known as GAP (Guaranteed Asset Protection) insurance, is not a new concept and it has been offered in other markets. Lately, car brands have been working with insurers to offer this sort of protection in Malaysia – RTI-GAP Insurance by Nissan and Peugeot Protect are examples. Both Tan Chong and Naza are working with AXA Affin for their RTI insurance offerings. Mercedes-Benz Services Malaysia’s RTI plan is underwritten by AXA Affin.
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Ok cool. It depends on the price of the excess to determine cost-benefit. Remains to be seen if its exorbitant or sensible.
Only useful if you live in high crime area or you like to drive drunk. Nobody buys a luxury car expecting it to be lost or totalled in 3 years.
BMW have this offer with Allianz for first year only but without extra premium.
Bought under company akaun so no problem.
One thing we believe, insurance company will never do losing money business. They will earn as much as they can from the policy holder.
but how much will the premium be? affordable? that’s the catch. too good to be true?
Aiyo….long time have Liao ma! ‘Agreed value clause’!
Yep. Correct. AGREED VALUE.
Rebranding of the same thing
basically insurance on top of insurance..
Isn’t car insurance supposed to start deregulation this year? How come no news?
gradually. this will apply to premium prices.
example to insure a 3 yrs old Camry for 100k. before this the premium calculation is the same for all insurance cimpanies as per bank negara guideline.
unregulated means insurance A, B and C all have different pricings. but in my knowledge cheap doesnt necessarily means better.
The cat is out of the bag now. Most of us know insurance company do NOT pay full when your car is lost/fire due to depreciation.
It is good that car& insurance companies are offering its customers an alternative ie through a scheme call RTI.
As customers, U are hereby told by this site that U have the Option 2 purchase the scheme or take the Risk( Caveat Emptor).
At least U have a choice 2 cover or NOT 2 cover. Ultimately U are the one 2 decide. Choose wisely & don’t complaint later. There is no such thing as FREE lunch.