Motor Insurance: Costs, Benefits, How to Buy, Claim Process Time

Have you ever heard of motor vehicle insurance? Every day the number of motorized vehicles is increasing and making the roads more congested and congested. This certainly increases various kinds of risks, ranging from the risk of accidents, theft, natural disasters, and so on. This makes insurance companies compete to issue motorcycle insurance products for the people of Indonesia.

Then, actually, what is motor vehicle insurance? What are the types and benefits offered? This time, Qoala has prepared the complete information especially for you.

What is Motorcycle Insurance?

In simple terms, motor vehicle insurance is coverage for damage or loss to a motor vehicle. Motor insurance coverage is damage to the motor vehicle itself as a legal responsibility to other parties who are harmed when using the vehicle.

With lost motorcycle insurance, you can transfer the financial risk due to a lost or damaged motorcycle to the insurance company. Of course you have to pay premiums regularly to get insurance protection.

Motor Insurance Type

Motor insurance companies provide coverage that is not limited to one event. There are at least two categories of Adira, Honda, or other motorcycle insurance coverage, namely:

1. Comprehensive or Combined

The first type of coverage is All risk or Comprehensive which covers almost all risks, although there are some exceptions. It is called combined or Comprehensive because this type offers a guarantee of liability to other parties or 3rd parties. Sinarmas, BCA, or other insurance companies will cover damage or loss due to scratches, dents, loss of vehicle parts to total loss.

2. TLO or Total Loss Only

The Total Loss Only guarantee still uses the risk provisions as in comprehensive coverage , but the loss is reimbursed only if the total loss has exceeded 75% of the market price of the vehicle.

Because replacement can only be obtained after there is major damage or loss, of course Total Loss Only coverage is cheaper than the comprehensive type. Usually, the premium amount reaches 50% or even lower than the comprehensive premium. Interested in using this Yamaha lost motorbike insurance service?

What are the Benefits and Benefits of Having Motorcycle Insurance?

Every vehicle owner certainly has the risk of loss, accident, or various other unwanted things as a result of traffic congestion or high crime rates in the capital. One of the steps to minimize the risk of loss or loss or accident is motor vehicle insurance. To be clear, here are the benefits of using Honda cash, Astra, and so on motorcycle insurance that are worth considering.

1. Provides Protection

Motor vehicle insurance can provide protection for vehicle owners against losses due to unexpected events. Usually the losses that arise can be in the form of losses due to being stolen, damage due to collisions, and so on.

2. Reduce Costs

Repair costs incurred to repair vehicle damage due to accidents are certainly not small. By using insurance, the policyholder will not be burdened by the overall costs incurred so that financial planning is not disrupted.

3. Provides a sense of security

Another lost motorbike insurance benefit is that it provides a sense of security for the owner. Insurance policy holders do not need to worry if the vehicle is damaged or lost because it is guaranteed by insurance. Even so, the driver must remain careful and alert when using the vehicle.

4. More Protection

Several types of vehicle insurance offer various additional protections, in addition to repairs ( all risk insurance ) or replacement of vehicle units (TLO insurance). It can be in the form of offering legal assistance to third parties, life insurance services and others. Of course this is able to provide more benefits for insurance users.

5. Get Additional Services

BCA, Adira, Honda, and others motorcycle insurance policy holders can get additional services such as 24-hour hotline facilities and car tows. A replacement car service is useful when the insured car is in the process of being repaired at a repair shop. So your daily activities are not disturbed.

Examples of the Best Motorcycle Insurance Products in Indonesia

Not all insurance companies provide motor vehicle insurance, especially motorcycles. There are those that include vehicle insurance that includes cars and motorcycles, others that only have car insurance products. For motor insurance , here is a list of insurance companies that provide it:

1. Sinar Mas

The first motorcycle insurance is Sinar Mas, which provides special protection for motorcycles with a maximum age of 10 years. You can pay premiums according to the policy period or annually with the following benefits and conditions:

• The amount of own risk ( Own Retention ) when the claim is the responsibility of the customer is only 10 percent of the coverage (equivalent to Rp. 750 thousand)
• Premium refunds can be obtained if the coverage period has not reached 8 (eight months)

Note, this insurance does not apply to motorcycles with commercial use such as motorcycle taxis. Sinar Mas will survey the condition of the motorbike before it is registered as an insured object, unless the motorbike is newly purchased. Interested in using Sinarmas motorcycle insurance?

2. Zurich

Motor Z products from Zurich Insurance provide comfort in driving with 24-hour protection services. There are 3 (three) benefits and conditions offered by Motor Z insurance, namely:

• Maximum age to enter the vehicle is 7 (seven) years at the time of insurance closing
• The covered vehicle is a two-wheeled or three-wheeled motor vehicle with a capacity of not more than 250 cc
• There is a guaranteed risk of permanent disability or death with a sum assured up to 10 times the price of the motorcycle (equivalent to a maximum amount of IDR 200 million)

Note, this insurance product is not intended for commercially used two-wheeled vehicles.

3. Jasindo

The next motor vehicle insurance is Jasindo which provides protection for motorized vehicles as well as drivers and a maximum of three passengers through Jasindo Oto Plus protection. There are 4 (four) other benefits from Jasindo OTO Plus:

• Motorcycle maintenance compensation and benefits in the form of compensation for maintenance of 80 percent of the market price, coverage for motorcycle parts, and maintenance costs at the workshop
• Additional coverage in the form of non-standard motorcycle equipment or equipment
• Constructive total loss is given in case of damage that exceeds/minimum 70 percent of the market price of the motorcycle
• A varied workshop partner, Jasindo cooperates with the following two workshops, namely regular workshops and authorized workshops.

You don’t have to bother visiting the Jasindo office when surveying the condition of the motorbike. The company will come to your place to conduct a survey.

4. Adira

Adira motorcycle insurance has a product called Adira Autocillin Motopro. Interestingly, this insurance product is available with a sharia-based system called Motopro Ikhlas. The protections that can be obtained are:

• Personal accident benefit: compensation if the driver is completely permanently disabled or dies due to an accident
• Medical Expense: cover for hospitalization costs after a motorcycle accident. Giving the claim with a reimbursement system
• Profit Sharing: a facility that is only owned by sharia motorcycle insurance products with the Tabarru’ Fund principle (please help)

Adira’s conventional and sharia insurance products each have the same two categories, namely the MotorPro Package (motorcycle prices less than Rp500 million) and the MotorPro Plus Package (motorcycle prices less than Rp100 million).

5. Astra

Astra motorcycle insurance named Astra Buana is already trusted as a company engaged in the automotive sector, including two-wheeled vehicles. Through Garda Motor insurance products, there are 5 (five) kinds of benefits offered, namely:

• Personal Accident: benefits for the driver and passengers in the form of emergency treatment and compensation for death due to an accident
• Legal Liability by Third Parties: benefits of protection against damage to other people’s vehicles caused by the customer’s negligence while driving
• Strike, Riot, Civil Commotion: extended protection caused by riots, crime and demonstrations
• Flood & Windstorm, Earthquake, Tsunami, Volcano Eruption (Art Of God): protection against damage from natural disasters and things beyond human capabilities

6 Yamaha Motorcycle Insurance

As one of the largest motorcycle product companies in Indonesia, Yamaha also provides special protection for Yamaha motorcycle users through Simoda Motor Insurance. The benefits and conditions are as follows:

• Provides All Risk and Total Loss Only (TLO) insurance protection
• Replacement of the motor to the owner in full regardless of the market price
• Also applies to motorbikes that are still in the credit period
• The maximum age of the vehicle is two years.

Comparison of Motor Insurance Premiums or Costs

The cost or premium for motor vehicle insurance is certainly different for each insurance company, as well as the type of motorbike used. At least there are various factors that determine the premium range, namely:

• Motorcycle age
• Type / variant of motorcycle model
• Extended warranty (if any)
• Number plate area code

OJK Circular Letter (Financial Services Authority) Number 6/SEOJK.05/2017 has regulated the calculation of motor insurance premium costs. The circular explains that the lower and upper limit premium percentages are according to the type/category of the vehicle and the area where you use the vehicle.

The formula for calculating the premium is:

Premium percentage x On The Road (OTR) Motorcycle price + administration fee

Next you have to know the simulation of Adira, Honda, and so on motorcycle insurance costs.

Based on the circular letter of the OJK (Financial Services Authority) RI Number 6/SEOJK.05/2017, this is how to easily calculate comprehensive motorcycle insurance premiums and TLO.