Motorcycle Insurance

Motorcycle insurance protects motorcycle owners from financial losses due to motorcycle accidents or theft in the form of monetary compensation. This compensation, called benefits, is given by the insurer to the insured once they file a claim during the protection period.

Motorcycle insurance is generally divided into two types based on the benefits, namely: TLO (total loss only) and comprehensive (all risk). Which one of the two is the best? The answer, of course, is tailored to your conditions and needs.

TLO protects your motorcycle from theft or damages greater than 75% of the motorcycle’s value at the time of the incident. TLO insurance, in general, is included in new motorcycle purchases using credit, but it is highly recommended to buy it yourself when you buy a used motorcycle.

Comprehensive insurance provides a broader range of protection because it covers all kinds of losses, including small, medium, and extensive damage. All risk insurance premium is generally priced higher compared to TLO.

Apart from the two types above, motorcycle insurance can also be divided based on the motorcycle’s purchase method, whether it is cash or credit. If you buy a motorcycle in cash, you need to purchase protection separately because motorcycle dealers rarely provide motorcycle insurance for this purchase method.

If you buy it on credit, however, your new motorcycle is automatically protected by insurance. Although different, the calculation of motorcycle credit insurance for loss or cash has a similar procedure. What about insurance for motorcycles with credit? Don't worry; the calculation is the same as a motorcycle purchased in cash. One company that offers insurance products for motorcycle credit and accident protection is the FIF Astra (FIF Group).

Either all risk or TLO, both have the benefit of protecting your motorcycle from damage or loss. However, when choosing which type of motorcycle protection insurance is best for you, of course, you need to adjust it according to your needs.

Comprehensive insurance is highly recommended for luxury motorcycle owners or those who want their motorcycles to be always in prime condition and don't mind paying high premium prices.

TLO insurance is recommended for motorcycle owners whose work, or living areas are prone to theft or theft. This insurance is also recommended for those who still have a motorcycle loan for an extended period and need protection at a more affordable price.

The amount of insurance for two-wheeled vehicles depends on three factors: the type of insurance, the price of the motorcycle, the area of ​​residence, and the kind of extension desired.

First, determine you need TLO or comprehensive insurance for your motorcycle. Then, find out the terms of motorcycle insurance premiums, for example, the TLO product from Adira or comprehensive from Sinarmas, whose amount may be very different. Second, find out where you live in the region category 1, 2, or 3 to determine the percentage of the premium you have to pay. Finally, decide what type of expansion you want.

To determine the percentage of premiums from the area where you live, you can refer to the policy set by the Financial Services Authority (OJK) No 6 / SEOJK.05 / 2017 concerning 'Determination of Premiums or Contributions in Property and Motor Vehicle Insurance Business Lines.' In summary:

• For TLO insurance , the range of percentage of premiums for region 1 is 1.76% - 2.11%, region 2 is 1.80% - 2.16%, and region 3 is 0.67% - 0.80%.
• As for comprehensive, for region 1 3.18% - 3.50%, region 2 3.18% - 3.50%, and region 3 3.18% - 3.50%.

Motorcycle loss insurance is divided into two types based on purchase, namely motorcycles purchased by cash and credit. For motorcycles purchased in cash, insurance is generally not covered, so you need to buy insurance separately for protection. As for purchases on credit, motorcycles are automatically protected by loss insurance. For the method of calculating lost credit motorcycle insurance, it is similar to a motorcycle purchased in cash.

The method of calculating lost motorcycle insurance depends on several factors, namely the period between the date of loss and the date of claim, the OTR (on-the-road) price of the motorcycle at the time of the loss, and the amount of credit remaining for the lost motorcycle. If purchased on credit, the method of calculating lost credit motorcycle insurance claims is by using the sum insured to pay off the ongoing credit. Even though the motorcycle has been lost, make sure you continue to pay off the motorcycle credit so that the process of disbursing the sum insured runs smoothly.

The procedure for calculating lost motorcycle credit protection insurance from Adira, FIF, Oto Finance, CS Finance, or other companies or institutions can differ. Make sure you always look for the information first before choosing the best protection option for your favorite two-wheeled vehicle.

Suppose you already have protection for your motorcycle and someday want to claim the insurance company. In that case, you will have to follow a different procedure, depending on the incident.

How to claim accident or damaged motorcycle insurance is that you first have to report to the insurance company by sending the following documents: photo documentation of the damaged motorcycle part, the required documents (Identity Card (KTP), Vehicle Registration Certificate (STNK), Driving License (SIM) C (or other documents that will be informed by the insurance company), come to the partner workshop to report the repair with insurance, and fill out the claim form. Finally, you just have to wait for information from the repair shop about the status of your claim and repair your motorcycle.

For how to claim lost motorcycle insurance, you must first report your loss to the leasing party within 3x24 hours from the time of loss. Prepare official documents such as KTP, SIM, STNK, and motorcycle keys. Then, report your loss to the nearest police station to get a Report Receipt (STPL) which will be needed when we are going to file a claim. Next, you need to apply for STNK blocking at the Regional Police (Polda) office before making a claim to the leasing party. Finally, you just have to wait for coverage from the insurance company for your lost motorcycle insurance claim. The process generally takes 2-3 weeks, including when you make an insurance claim on a motorcycle with lost credit status. For the record, make sure you always compare the procedures for motorcycle protection insurance claims from various companies, such as FIF, Oto Finance, BAF, Adira Finance, or other companies so that you don't take the wrong steps.

Either TLO insurance or comprehensive, both generally require the same documents when we are going to make a claim.

To make a partial loss claim, you need to prepare the following documents: 1) Chronology of events, 2) Photocopies of policies, certificates, and reports or endorsements, 3) Driver's license (SIM) at the time of the incident, 4) Vehicle Registration Certificate (STNK), and the insured's Identity Card (KTP), 5) Photos of damage, estimated repair costs, 6) Local Police Report, 7) Third-Party Demand if there is a loss involving a third party, and 8) Other relevant documents related to filing a claim.

As for total loss claims, the documents you need to prepare are: 1) Chronology of events, 2) Photocopies of policies, certificates, and reports or endorsements, 3) Vehicle Registration Certificate (STNK), Motor Vehicle Ownership Book (BPKB), invoice signed to purchase, receipt, and certificate of ownership, 4) Special vehicle registration book that is mandatory, 5) Regional police certificate, 6) Letter of blocking Vehicle Number Certificate (STNK), 7) Driving License (SIM ) the driver at the time of the incident, 8) Photos of damage, estimated repair costs, 9) Local Police Report, 10) Third Party Claims in case of losses involving third parties, and 11) Other relevant documents related to filing a claim.

The level of your motorcycle insurance price depends on several factors, such as the type of insurance, the price of the motorcycle, the area where you live, or the type of expansion you choose. The amount of insurance for the protection of your favorite two-wheeler also depends on the company that offers it. For example, insurance costs for motorcycle protection from Adira will be different from other companies. In the end, the price of motorcycle insurance will depend on your needs and abilities too.

When you make a motorcycle insurance claim, you will be charged a number of fees. This cost is called own risk or own risk. Own risk is more commonly found in all risk type insurance. The cost of own risk, in general, is IDR 300,000, but the amount can depend on the amount of premium you pay.

In general, the process of missing motorcycle insurance claims takes 14 working days after being approved by the insurance company.

When making a claim, it is possible that the insurance company will not approve of it. What causes a motorcycle insurance claim to be rejected? Some of the reasons include incomplete documents required for claims, violating traffic rules, drunk riders while riding motorcycles, changes in motorcycle functions from the start of the agreement, differences in the name on the motorcycle insurance policy with the name on the motorcycle registration, expiration of the policy period, and if the motorcycle You are modified so that the conditions are different from the beginning of the policy.

Whereas in the case of a lost motorcycle insurance claim is rejected, the reason could be because the loss occurred in illegal places or was proven to have violated the law, such as violating traffic, not having a driver's license or driver's license forfeited, and other reasons agreed in the insurance agreement. So that you can avoid missing motorcycle insurance claims being rejected, make sure you use your motorcycle appropriately.

The validity period of motorcycle insurance policies is generally valid for one year, but it can also be different, depending on your agreement and the insurance company written in the policy.

There are various credible insurance companies that provide protection products for motorcycles, ranging from Adira, Sinarmas, ACA, Allianz, Astra, Lippo Insurance, Avrist General Insurance, and many more. Various motorcycle insurance companies are also scattered in various regions in Indonesia, starting from Jakarta, Bandung, Bali, Semarang, Medan, Surabaya, and so on. In order to provide services that make it easier for prospective customers, several insurance companies also work directly with various motorcycle brands, such as Honda, Yamaha, Kawasaki, and so on to purchase vehicles on cash or credit.

The following are terms commonly used in motorcycle insurance:

• Act of God: losses caused by natural disaster events
• Comprehensive or all-risk: insurance for comprehensive motor protection or insurance all risk with coverage of all types of risk, such as minor damage, major damage, to lose
• Market price: the price of the vehicle sold on the free market that is obtained, depending on the brand, type, location, and year of purchase the same before the risk of loss or damage occurred
• Policy: a document issued by the insurance company as a form of a written agreement with the insured whose function is to regulate the coverage of insurance protection and benefits.
• Premium: money that must be paid at a certain time as the obligation of the insurance policyholder
• Insurer: a party that provides protection to the insured and is responsible for providing compensation in the form of benefits against loss and / or damage to motorized vehicles
• Malicious behavior: when a person or group of people deliberately damages another person's property for any reason, such as grudge, jealousy, anger, or acts of vandalism.
• Own risk (deductible) or own risk: OR is the value of the burden on the insured party for any loss or damage to the motorcycle which is calculated based on the amount of compensation
• Insured: an individual or legal entity who has a financial interest in a motorized vehicle and binds himself to the insurer to get protection for the motor vehicle.
• Total loss Only (TLO): insurance that will only provide coverage for losses due to theft or damage with a loss value of more than 75%
• Sum insured: an amount of money given by the insurance company to the policyholder as a form of benefit, the amount of which depends on the insurance contract agreed upon at the outset.