Invoice cover allows the Insurer to pay the invoice price of the vehicle due to an event of total loss or theft of your vehicle.
If you opt for Invoice Cover/Return to Invoice in your vehicle insurance policy, in case of accidental total loss or theft of the vehicle, the insurer will pay the invoice price towards purchase of a new car with same or similar make/model/variant.
If the Invoice cover is not opted, the insurer will pay an amount equivalent to the IDV after standard deductions towards depreciation, if any. The difference in amount to buy a new car has to be borne by you.
Usually, claim under Invoice cover will be equivalent to the ex.showroom price of the same make, model, variant on the date of accident at the place of registration of the vehicle. This cover is available for less than 3 years old vehicles only.