In addition to preparing for the possibility of unexpected events, you need to provide comprehensive protection for the things that are important in life, one of them on the vehicle.
Even though it is now considered one of the financial needs, there are still many people who take it without really understanding the terms used in car insurance. Before deciding to register, know the terms that are often contained in the car insurance clause:
Even though it is now considered one of the financial needs, there are still many people who take it without really understanding the terms used in car insurance. Before deciding to register, know the terms that are often contained in the car insurance clause:
- Coverage Price. The purchase value of a motor vehicle when a vehicle insurance policy is made. This price is stated in the insurance policy and becomes the maximum size of the insurance company in the event of a claim from a customer.
- Market prices. The sale value of the vehicle being the object of collateral.
- Premiums. Value of money paid by customers to insurance in return for collateral services provided. Payment can be made monthly, annually, or cash in advance. The value of premiums excluding administrative costs and stamp duty.
- Total Loss Only (TLO). The insurance company will guarantee a loss if the vehicle has an accident with the cost of repairing damage above 75%, the vehicle catches fire, lost due to theft or forced seizure. However, if your vehicle is only experiencing minor damage such as a scratch on the car body, broken mirrors, or other minor damage, then the owner cannot claim insurance.
- All Risk. This insurance is also called comprehensive or overall insurance. In contrast to TLO, insurance will pay claims for all types of damage, ranging from minor damage such as blisters, heavy damage, to loss. However, the All Risk insurance premium is more expensive than TLO.
- Loading fees. Is the cost of an increase in car insurance premiums that are determined based on the age of the car. The calculation of loading fee is determined based on OJK rates with the following details:
- Indemnity or amount of compensation. The amount of reimbursement given by the insurance party to the customer for the loss he experienced is based on the prevailing market price at that time. This replacement amount can be reduced at your own risk as stated in the policy.
- Deductible or at your own risk. The value that is borne by the customer at each loss or damage calculated from the amount of compensation.
- First party (insurance) to change the insurance policy.
- SPPA (Insurance Closing Request Letter). Fill-in forms filled out by prospective customers for insurance use to evaluate risk. This form contains a list of prospective customer data questions, details of the object to be insured before it is approved by the insurance.
- Third Party Legal Liability (TJH III). Is a guarantee to replace to a third party due to third party vehicles having problems by the customer's vehicle.
- Clause 41B (Riot Strike Malcious Damage and Civil Commission). Providing compensation to customers when victims of riots, terrorism, riots, and so forth.
- Natural Disasters (Act of God). Guaranteed replacement of the customer's vehicle if there is a risk arising from natural disasters such as hurricanes, earthquakes, floods, and so forth.
Take the time to learn these terms before you sign an auto insurance policy. Choose vehicle insurance that suits your needs, with an easy claim process and excellent customer service. Jasindo OTO Motor Vehicle Insurance from Jasindo Insurance that guarantees your car including loss (Damage or Loss) of Motorized Vehicles, Legal Responsibility to Third Parties including compensation for damage to property and compensation for bodily injury (or death), legal fees or Expert assistance costs, and Compensation for Drivers and Maximum 3 Passengers.
