There are certain conditions under which the RTI can be applied. They are:
The RTI cover can be used only if the vehicle is completely damaged or is stolen. They are not useful to claim small cracks and dents.
The RTI cover helps you recover the on-road price of the vehicle at the time of claim.
The RTI cover helps compensate for a new vehicle owner if their vehicle suffers from loss or damage in an event of an accident.
RTI is usually availed by vehicles that are aged 3 years or below. For older vehicles, the depreciation value will be much more and it will not make much sense for the insurance providers to offer this service to their customers.
Basic insurance for commercial vehicles might not fetch an amount equal to the on-road price. This is why RTI is beneficial as it offers financial assistance to new vehicles especially in areas where vehicle robbery is common.