Motor Vehicle Insurance

Motor vehicle loss or damage coverage. In principle, the guarantee is against damage to the motorized vehicle itself and legal liability to other parties who are harmed when using the vehicle.

 

 

The basic coverage conditions that can be guaranteed by an insurance company consist of:

1. Vehicle damage

2. Liability, which consists of:

   • Third party liability

   • Passenger's legal liability

 

The coverage provided by the insurance company for motor vehicle insurance can be divided into 2, namely:

• Combined or Comprehensive , this coverage is called All risk, even though that designation is not entirely correct, because there are also risks that are excluded. It is called Comprehensive or combined because this type is offered with a guarantee of liability to other parties or third parties.

 

Loss or damage that can be replaced by insurance ranging from losses due to scratches, dents, loss of vehicle parts to total loss. Each claim will be subject to its own risk costs, which are costs that must be incurred by the policyholder each time an incident occurs when submitting a claim.

 

• TLO or Total Loss Only, the guarantee with this coverage still uses the risk provisions as in comprehensive coverage, but the losses that can be reimbursed if there is a loss the total amount of the loss has exceeded 75% of the market price of the vehicle.

 

Because replacement can only be obtained after there is major damage or loss, of course this type of coverage is cheaper than comprehensive types. Usually, the premium amount reaches 50% or even lower than the premium for comprehensive types

 

For motor vehicle insurance, there are provisions regarding the risks that are guaranteed for vehicles that are the object of coverage. The details of the covered risk are as follows:

 

1. Loss / damage to vehicles, caused by:

   • Crash, bump, overturn, slip off the road

   • Other people's evil deeds

   • Theft of vehicles or equipment

   • Loss due to fire

   • Perit strike

   • Damage during transportation

 

1. Third party legal liability, each policyholder can apply for an extension of the insurance to the insured vehicle. The extension of this coverage varies for each insurance company. To get the extended coverage coverage, the Client must pay an additional premium at a predetermined rate. As for the expansion of guarantees commonly found are:

 

1. Medical expense, namely medical expenses for drivers and passengers in a certain amount.

2. Personal Accident

3. Expansion of guarantees for riots, terrorism, sabotage

4. Expansion of flood guarantees