Motor Vehicle Insurance

By | April 5, 2022
Product name
Indonesian Motor Vehicle Insurance Standard Policy
Is a standard policy issued by AAUI used in Indonesia and is designed to cover a combination of coverage, namely:
  • Coverage for the motor vehicle itself
  • Legal liability (JTH) to third parties

The types of coverage are:

– Combined (Comprehensive).

This condition provides a guarantee for loss or damage, either partial or total loss of motorized vehicles caused by the risks mentioned in the policy.

The risks covered in the policy:
  • Collision, impact, tipping over, slipping, or falling
  • Evil deeds
  • Theft includes theft that is preceded or followed by an act of violence.
  • Fire
  • Causes during the ferry crossing
  • Wheel damage if it results in vehicle damage due to an accident
  • Cost of maintenance/transportation to the nearest workshop
–  Total Loss (TLO)
Provides coverage for losses caused by the risks stated in the policy where the repair costs are equal to or greater than 75% of the vehicle price or the vehicle is lost, stolen, and not found within 60 days.
–  Extended Warranty
With an additional guarantee premium can be expanded with the following risks:
  • Legal liability to 3rd parties
  • Personal accident to passenger and/or driver
  • Riots, strikes, obstruction of work, evil deeds, and looting that occurred during riots, riots, terrorists, and sabotage.
  • Natural disasters such as floods, earthquakes, and others.
What must be done when buying the product
  • Study carefully the offer proposals submitted by agents/brokers, especially the risks that are guaranteed and not guaranteed, the requirements that must be met, the method of paying premiums, and the liability of the insured in the event of loss or damage.
  • Ensure the financial health of the insurance company that will guarantee the risks and additional benefits of insurance companies such as workshops, tow trucks, replacement cars, and others.
  • Asking for agency cards from agents who offer if through agents.
  • Fill in the Application for Insurance Closure with the correct data completely and signed by the insured candidate himself.
The requested data is usually related to:
  • Transportation type
  • Vehicle specifications such as frame number, engine number, year of production
  • Vehicle Use
  • Additional equipment
  • Sum insured (vehicle price)
  • Coverage period
  • Loss record/claim experience
  • Assist surveyors from insurance companies if appointed to conduct surveys on insurance objects before insurance closing.
To whom can the product be obtained?
These products can be obtained through:
  • Certified Insurance Agent.
  • Insurance Brokers especially for complete risk
  • Directly contact the insurance company that guarantees the risk either through the call center, the internet, or visiting directly.
What to pay attention to when buying this product
  • Offer letter from company
  • Ensure a certified agent
  • SPA
  • Ensure that the data in the SPPA is following the actual conditions
  • Read the contract/policy carefully and ask the agent/company if there is any doubt about the condition of the policy.
  • Request amendments (endorsement) if there are data errors in the given policy.
  • The amount of Own Retention / Deductible per incident
What to do when it doesn’t match what was promised
According to the condition of the policy in PSAKBI, what can be done are:
  • Request clarification from the company either through agents or directly to the company for the peace process or deliberation between the parties.
  • Complain to the Indonesian Insurance Mediation Agency for the value of a problematic claim of up to Rp. 750,000,000,-
  • If you still haven’t found a common ground, you can choose dispute resolution through arbitration or dispute resolution through the courts.

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