Differences in Benefits between All Risk and TLO Car Insurance
Before making a decision regarding which
car insurance you will choose, it is important to understand the differences between All Risk and TLO, both in terms of benefits and premium prices as follows.
| Benefits of All Risk Car Insurance | Benefits of TLO Car Insurance |
| Covers partial to total damage due to accidents or other unintentional causes. Examples: dents, scratches, total damage to the point where it can no longer be driven. | Covers the risk of loss and total damage only, the repair value of which is equal to or more than 75% of the vehicle price. Example: stuck, submerged in water, car badly damaged and can no longer be driven. |
| The maximum age to enter the car is 10 years (more than that will be subject to a premium loading fee). | The maximum age to enter the car is 15 years (more than that will be subject to a premium loading fee). |
| Premium prices range from 1.05% -3.69% of the vehicle price. | Premium prices range from 0.2% – 0.69% of the vehicle price. |
How to Claim All Risk Car Insurance
A claim in car insurance is an effort made by the insurance policy holder to obtain compensation for risks such as accidents or theft of a car insured by the insured to the insurer or insurance company.
Knowing how to claim All Risk car insurance in advance is very important so that it is not a hassle when it is really needed. Here are the steps for filing an All Risk car insurance claim.
Partial Loss Claim
The following is the procedure for submitting a partial loss claim for All Risk insurance:
Waiting for news from the workshop. The workshop will confirm the claim to the insurance provider and immediately repair the vehicle within 2-3 days. The workshop will notify you when it is finished.
Photograph the damaged part. The first thing we need to do when filing a claim is to document the damaged part of the vehicle. Because, this documentation will definitely be requested by the insurance company to prove your claim.
Report to your insurance provider. Immediately notify your insurance provider that you will be filing a claim, either by phone or email.
Prepare the required documents. The insurance company will provide information about what documents are needed to file a claim, such as an Identity Card (KTP), Vehicle Registration Certificate (STNK), Driving License (SIM), and others.
Visit a partner workshop. After that, tell the workshop that you want to repair your vehicle with insurance.
Fill out the claim form. The workshop will provide a form that needs to be filled out, according to the data in the document.
Partial Loss Claim Document
Chronology of events report
Photocopy of policy, certificate, and report or endorsement
The driver’s driving license (SIM) at the time of the incident, the vehicle registration certificate (STNK), and the insured’s identity card (KTP).
Photos of damage and estimated repair costs
Local Police Report Letter
Third Party Claim Letter (if the loss involves a third party)
Other relevant documents related to the claim submission
Total Loss or Missing Claims
The following is the procedure for submitting a claim for losses of more than 75 percent or loss due to theft:
Submit all files to the insurance company. If all documents are complete, submit them to the insurance company immediately.
Report to the insurance company. Immediately report the loss that befell you, whether it is a total loss or a loss due to criminal acts. The sooner you report it, the better.
Prepare documents. Prepare the requested documents, such as KTP, SIM, STNK, letter of loss (if the loss was caused by a criminal act), and vehicle keys.
Make a Police Investigation Report (BAP) at the police station. Immediately go to the local police station to make a BAP. Remember, the preparation of the Investigation Report is a maximum of 24 hours from the time of the incident.
Blocking STNK at Polda. You must also apply for STNK blocking to the Regional Police (Polda). This step is important in filing a claim for loss due to theft.
Take care of the certificate at the Directorate of Investigation. You also need to take care of the letter at the Directorate of Investigation of the Regional Police. The letter is needed to complete the documents that you have prepared previously. When making this letter, you will be asked for several supporting documents, such as a copy of your KTP, a copy of the BPKB, a copy of the vehicle purchase invoice, a copy of the loss report, a copy of the insurance policy, BAP, and the original Progress Report (Lapju) letter.
Total Loss Claim Document
Chronology of events report
Photocopy of policy, certificate, and report or endorsement
Vehicle Registration Certificate (STNK), Motor Vehicle Ownership Certificate (BPKP), purchase invoice, receipt form, and signed transfer of ownership letter
A special driver’s book for vehicles that require a driver’s license
Regional police certificate
STNK blocking letter
Driver’s license at the time of the incident
Photos of damage and estimated repair costs
Local Police Report Letter
Third Party Claim Letter if there is a loss involving a third party
Other relevant documents related to the claim submission
All Risk Car Insurance Premium Costs
The amount of the All Risk (comprehensive) car insurance premium refers to the provisions of OJK Number 6/SEOJK.05/2017 Concerning the Determination of Premiums or Contributions in the Property Insurance and Motor Vehicle Insurance Business Lines in 2017.
To give you an idea, the price of all car insurance that covers all types of losses, from floods, scratches, to lost, can be calculated with the cheapest All Risk car insurance premium calculator at Lifepal below. Or you can also check the car insurance premium by filling out the form above!
All Risk Car Insurance Rate Calculation Simulation
From the table above, you can calculate the amount of All Risk car insurance premium that must be paid. For example, an Agya car costs Rp150 million and has a B plate (Jakarta), then the premium category is region II and category 2. Here is a simulation of the calculation of All Risk car insurance costs each year while following the insurance:
All Risk insurance premium percentage x car price = premium cost
2.47% x Rp150,000,000 = Rp3,705,000 per year
From the calculation above, it can be concluded that the cost of All Risk car insurance premiums that need to be paid for a year is IDR 3,705,000 per year. However, if the premium is divided by 12 months, the amount of premium paid for a month is only around IDR 300 thousand.
Another example, a Toyota Fortuner car costs IDR 490 million and has a BB (North Sumatra) plate, then the premium category is region I and category 4. The following is a simulation of the calculation of the All Risk insurance premium that must be paid each year:
All Risk premium percentage x car price = premium cost
1.20% x Rp490,000,000 = Rp5,880,000 per year
From the calculation above, it is known that the All Risk car insurance premium that must be paid each year is IDR 5,880,000. However, if the All Risk car insurance premium is divided by 12 months, then the cost that must be paid for a month is around IDR 400 thousand per month. Keep in mind, the amount of the premium does not include administration fees, policy fees, and so on. At Lifepal, there is a 0% installment facility for this All Risk insurance product using a credit card.
Questions About All Risk Car Insurance
Here is a list of the most frequently asked questions regarding All Risk car insurance:
Is car engine damage covered by All Risk insurance?
All Risk car insurance can cover damage to the car engine because this policy provides comprehensive coverage, including if there is damage to the engine. However, there are several conditions where claims can be rejected such as intentional damage or other causes that are on the list of exceptions.
Does every new car have insurance?
When you buy a car in cash, usually you have to buy the car insurance yourself. However, if with credit, it is usually equipped with insurance from the leasing party so you only need to pay in installments according to the agreed price. These provisions can vary from dealer to dealer so you can ask directly when buying a car.
What is covered by All Risk car insurance?
Before deciding, it is important to know what All Risk car insurance covers. Here are the benefits of All Risk insurance based on the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) document.
Third party legal liability, resulting from accidents that cause death, injury and property damage
All Risk car insurance provides compensation or repair costs in the event of damage caused by:
Collisions, impacts, skids and falls
Criminal acts and theft accompanied by violence or threats
Fire caused by burning of other objects close to where the vehicle is stored
Fire caused by lightning strike
Damage due to water used to extinguish fires
Vehicles were destroyed on the orders of authorities in an effort to prevent fires.
Vehicles on board a ship that had an accident
What are the exclusions in All Risk car insurance?
The exceptions in All Risk car insurance are as follows:
Driver violates traffic signs
Vehicle accidents involving underage drivers
Vehicle damage is not covered if used for:
Giving driving lessons
Taking part in a race, campaign, or demonstration
Used as transportation in acts of embezzlement, fraud, and hypnosis
Loss of vehicle due to crime committed by family or relatives
Carrying a load that exceeds capacity
Damage caused by chemicals or other liquids inside the vehicle
The vehicle is driven by someone who does not have a valid Driving License (SIM)
Vehicle driven by a person under the influence of alcohol or drugs