A. Definitions of Motor Insurance
Insurance is defined as an agreement whereby an insurer makes a bond with an insured by accepting a premium to provide compensation to him because of a loss, damage, or loss that may be experienced due to an unexpected event.
Motor Insurance is a financial product to provide protection to motorbikes from things that will be detrimental. Motorcycle insurance aims to provide protection from physical damage and loss due to accidents such as collisions, collisions, sticking etc.
B. Types of Motor Insurance
There are 2 types of insurance for vehicles seen from the type of vehicle, namely motorcycle insurance and car insurance. And based on the type of protection, vehicle insurance is divided into 3 types, namely as follows:
- All Risk or Comprehensive Insurance
All risk insurance is a type of vehicle insurance that provides protection and reimbursement of costs or guarantees for all types of risks, both light and severe, to the risk of losing a vehicle. So the insurance company will replace or bear all costs related to the risk of whatever happens to the vehicle. Even the slightest damage to the vehicle, the vehicle owner can submit a claim and the insurance company will cover all the costs of repairing the vehicle
- Total Loss Only (TLO) insurance
TLO Insurance is a type of vehicle insurance that provides guarantees or insurance costs only if the vehicle is lost due to theft and there is damage to the vehicle with a repair value equal to or more than 75% of the price of the vehicle at that time. If the estimated value of the repair for the damage to the car is less than 75% of the price of the vehicle, then the claim submission will definitely be rejected by the insurance company.
- Combination insurance
This type of insurance is a combination of all risk insurance and TLO. That is, all minor damage to severe or severe and loss of vehicles can be borne by the insurance company. Technical types of insurance depend on the insurance options provided by insurance companies such as: In the first year, the coverage is the type of all risk. Then in the second year, using TLO. Or examples of other conditions below. An insured vehicle uses all risk insurance types in the first 2 or 3 years when the vehicle is still in new condition. Then in the following years switched to the TLO type considering the age of vehicles that were no longer young. So this type of insurance can adjust depending on the condition of the vehicle and the financial condition of the vehicle owner.
C. How to Submit Claims
The conditions that must be fulfilled to submit a motorcycle insurance claim are as follows:
- Photocopy of motorcycle insurance policy
- Photocopy of the motorbike owner’s Driving License (SIM)
- Photocopy of Identity Card (KTP) of the motorbike owner
- Photocopy of premium payment letter
- Statement of loss of motorbike from police to risk loss
Keep in mind, the submission of claims may not exceed the maximum claim time limit, so that insurance claims can be received and obtain coverage from insurance companies.
D. Motor Insurance Benefits
There are several benefits that can be obtained if you use vehicle insurance, namely:
- Providing protection to the motorbike against uncertain or unexpected events such as loss due to theft, damage due to accidents or natural disasters, and so on.
- Assisting financial planning or management due to costs incurred for motor damage.
- Giving a sense of security to motorbike owners.
- Obtain additional services such as 24-hour customer service telephone facilities, tow car facilities, replacement motorbike services when the motorbike is in the process of repair in the workshop, and others.
That’s an explanation of a credit score that you need to know. Hopefully, you can increase your knowledge. Thank you for the visit see you in the next post.