Motorcycle theft cases require us to protect the vehicle. To avoid large financial losses due to loss, you can choose to use lost motorcycle insurance.
This insurance provides protection benefits for your favorite motorbike if unwanted things such as motorbike loss occur.
The type of motorcycle insurance that covers the loss is total loss only insurance or TLO. Here's more information.
Definition of Lost Motorcycle Insurance
Lost motorbike insurance is protection for two-wheeled vehicles or motorbikes from the risk of being lost in the future. The risk borne by this type of insurance is when the motorbike is lost due to theft or other.
The type of insurance that covers the risk of losing the motorbike is TLO or Total Loss Only . This product provides a guarantee for the loss of a motorbike that is lost or damaged by more than 75 percent.
Types of Lost Motorcycle Insurance
Motorcycle loss insurance has two types. Both have advantages and disadvantages of each. Here's the explanation.
Motorcycles purchased in cash (c ash )
For the purchase of a motorcycle in cash, usually not accompanied by insurance. However, some motorcycle leasing will usually offer separate insurance products.
Therefore, you don't have to worry if you want to buy a motorbike in cash because there will still be an option to complete the motorbike that is paid off with motorbike loss insurance.
Motorcycles purchased on credit
If you buy a motorbike on credit, it will automatically be accompanied by motorbike loss insurance. Usually insurance premiums are included with the monthly installment fee.
Lost Motorcycle Insurance Premium Comparison
Insurance premiums for each type of motorbike will be different. However, in general, the premium is based on:
- Motorcycle age
- Type/varian model motor
- Extended warranty (if any)
- Number plate area code
The government has actually issued a regulation on premium insurance costs through the Circular Letter of the OJK (Financial Services Authority) Number 6/SEOJK.05/2017.
The circular explains that the lower and upper limit premium percentages are in accordance with 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
How to Calculate Lost Motorcycle Insurance Cover
The calculation of lost motorcycle insurance coverage on cash and credit purchases is generally not much different. However, there are important points to calculate the coverage.
Here are the factors you should pay attention to when calculating motorcycle loss insurance coverage.
Motorcycle Purchase Period
The sum insured that you will receive if you experience the loss of a motorbike depends on the period of purchase of the motorbike with the time of loss.
The shorter the period of purchase with loss, the greater the sum insured received. Vice versa.
If the time of loss occurs before 6 months from the time of purchase, the insurance will replace it with money in the same amount as the price of the motorbike on the market.
Find out the price on the road (OTR) of your motorbike
The price of OTR or On The Road when you lose your motorbike also affects the calculation of coverage. If the selling value of the motorbike when it is lost is below Rp. 10 million, then the sum insured will be deducted by Rp. 1 million.
But if the selling value of the motorbike is above Rp. 150 million, then the discount given is 10 percent of the price of the motorbike at that time.
Sum Insured is Used to Pay Off Loans
If the motorcycle purchased on credit is lost, the sum insured will be used to pay off the remaining outstanding credit.
In other words, you will be released from the remaining debt because it has been covered with the sum assured.
How to Claim Lost Motorcycle Insurance
In the event of a motorcycle loss, here's how to submit a claim to the insurance company:
Make a Report to the Insurance
When your motorbike is lost, immediately report it to the insurance by telephone, email or call center. For those who buy a motorbike with a credit system, they can directly ask the leasing party about insurance contacts.
At the time of reporting the insurance company will interview, and will ask some questions about the how, why, and when of the loss of the motorbike. The time to report to the insurance company has a maximum limit of 72 hours.
Make Minutes at the Police
After reporting to the insurance company, make a loss report at the nearest police station. You will be asked to create an event report containing personal data and a chronology of events. The limit for making minutes is a maximum of 24 hours.
Create Blocking Letter
This blocking letter serves as a complementary document needed during the claim process to the insurance company. This letter can be obtained from the Ditlantas (Directorate of Traffic) at the local Polda.
Handling Letters from the Directorate of Investigation
This letter is also a complementary document, you will be asked to fill out an application form with the appropriate name at the registered insurance police.
In an application, some documents that must be attached are
- photocopy of ID card,
- Copy of BPKB,
- Photocopy of purchase invoice,
- Photocopy of insurance policy,
- Photocopy of the report from the police,
- Cover letter from the insurance company
- Original letter of DPB (List of Goods Search),
- Original Lapju (Progress Report) letter from the police.
Submitting an Application for Insurance Claims
After all the documents are complete, it is time to submit a claim application letter to the insurance company.
Fill in the form completely and bring some supporting documents:
- Photocopy of vehicle insurance policy,
- Copy of SIM and STNK,
- Original letter of loss from the police,
- Letter of BAP (Minutes of Examination),
- Original BPKB, original purchase invoice,
- Receipts that have been accompanied by 3 pieces of stamp duty,
- 2 Motor ignition,
- Certificate of Head of the Directorate of Investigation,
- Letter of blocking STNK from the Regional Police, and Subrogation.
How Long Does the Lost Motorcycle Insurance Claim Process Take?
The time it takes to process a claim depends on the insurance or leasing company you choose. Some are one month and some are even up to three months.
Lost motorbike insurance can actually be easily claimed to the insurance company as long as all the requirements are complete. Insurance will also make you feel safer when driving.
What If Your Lost Motorcycle Insurance Claim Is Denied?
If your claim is denied, follow these steps.
1. Check Your Insurance Policy
Check again the contents of the policy contract to make sure you have met all the requirements and there are no points in the policy that you violate.
Read and understand again what causes an insurance claim to be rejected. Do not let the rejected claim be caused by negligence in reading and understanding the contents of the policy.
2. Immediately Contact the Insurance Company
If a lost motorcycle insurance claim is rejected, you must immediately contact the insurance company and ask what is the reason and cause of your insurance claim being rejected.
If you have met all the requirements, you can file a complaint with the insurance company.
3. Take the Legal Path
Finally, you can take legal action by subpoenaing and filing a lawsuit to the Civil Court.
It should be noted, you can do this if you have fulfilled all the conditions, but the insurance claim you submitted is still rejected. Prepare strong evidence to win the case.
So, don't forget to add insurance coverage for your motor vehicle, OK!
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