How To Work And The Reasons For Buying Car Insurance? – Car insurance is a form of security provided by insurance companies for vehicle owners of all kinds of damage and/or loss claims caused by the vehicle when used on the road.
The basic structure of a working car insurance model is this: when you pay a premium to an insurance company, your premium, along with other policyholder premiums, will enter into a large “fund” formed by the insurance company. The insurance company manages this fund, and the money from the fund will be used to compensate policyholders who are experiencing an accident.
Why Buy Car Insurance?
Drivers in Indonesia under Law No. 34 of 1964 must obtain accident insurance – at least Third Party Insurance. Other types of coverage (fire, theft, or comprehensive) are the choice of the driver or car owner.
Although some of us believe that careful driving can guarantee the safety of ourselves and others, data from the Indonesian National Police states otherwise. According to these data, the number of traffic accidents involving motorized vehicles has not declined in recent years.
Many people ignore the potential cost of damage that can be charged to them and ignore the role of car insurance in protecting them against these unfortunate events. Having guaranteed car insurance can help ease the financial burden of an accident or losing your vehicle. More importantly, this insurance can prevent you from being a victim of a dangerous driver.
Comparing Car Insurance
Although the cost of some car insurance packages can be very expensive, there are many choices for you, depending on the type and expansion of the guarantee you are looking for. In Indonesia, car insurance premium rates and basic premium calculation are regulated by insurance companies, so the numbers will vary by company.
The consequence of this is that when you do a comparison of a car insurance company, you not only have to compare the premium rates but also other factors. Some of the factors we have identified include:
- Value-added services (eg car rental or reimbursement of transport when your car enters the garage).
- Ease of renewing your insurance (for example via online).
- The complexity of the claim process.
- Number and location of partner workshops.
- Customer service.
Causes of Car Insurance Claims Denied
Vehicle insurance can indeed be an option in helping to ease the burden of an accident. Unfortunately, not everyone understands the important things related to insurance claims. This is the reason why car insurance claims were rejected.
Using vehicle insurance can certainly protect your favorite car from accidental damage. This is because the insurance function can alleviate when there is a risk to him or the insured object.
Every policyholder must pay close attention to the conditions that make his claim approved or not. Each definition and explanation in the clause must be correctly understood. It takes time to understand it because the language used is a legal language that is sometimes difficult for most people to understand. But studying this will mean a lot when you need to file a claim.
Some claims were rejected by the insurance company because it did not comply with some agreements for the first time. Therefore, you need to understand some of the reasons for claims being rejected and why.
Insurance claims can be delayed or even rejected if the management of a claim exceeds the time specified in the policy. Insurance will always provide a certain time limit for handling claims to you. Passing from that, the claim can be rejected. Car insurance claims must be taken care of immediately because the deadline is short, only 3 x 24 hours.
Driver document is incomplete
Documents must be completed for submission. A certificate from the police is also needed if serious damage occurs. Besides, photos also become one of the proofs when they want to submit a claim to insurance.
Drivers violate the law
Another reason that makes insurance claims rejected is if the policyholder commits an unlawful act. For example, if he has a comprehensive type of insurance then his car has an accident due to reckless driving or breaking traffic, he cannot file a claim. The same thing applies if the policyholder does not have a driver’s license when driving, parking anywhere, and getting drunk.
The area of occurrence is not included in the contract
The insurance policy might include a clause regarding the area in the agreement. Claims are only served if an event occurs in a certain area. If someone insures his vehicle in Indonesia and the policy states that the claim can only be submitted if he has an accident in Indonesia, then the claim will be rejected if he has an accident abroad.
Do not report additional accessories
Every addition of car accessories must be reported to the insurance company and attach the value of the accessory so that if a claim occurs, the accessory can be covered by the insurance company. The addition of NSA (Non-Standard Accessories) will be charged the same rate as the one charged on the vehicle and will be multiplied by the value of the NSA to get the premium value that needs to be added. Premium additions are limited to the rest of the period that has not been undertaken.
Damage occurs is the initial damage before the car is insured
In this case, the insurance company will indeed return the vehicle as before. Therefore it is necessary to do a survey and photos as proof. Here explains if the car has been damaged before being insured, then certainly cannot be claimed.
The policy is not in the waiting period
The waiting period in insurance is certain after the policy is issued, the cost of claiming the insured vehicle is not guaranteed by the policy. This waiting period is 1 month after signing the clause.
It is intended that the damage to the car that occurs as a result of the accident by the insured. Suppose the insured accidentally crashes his car into another car or he hits the vehicle so it is dented, then this cannot be claimed. Or accidentally crashing into a flood that can make the car strike due to the engine experiencing water (water hammer).
Insurance policies can be inactive due to many circumstances. This inactive condition is also called lapse. The insurance company is not willing to pay insurance claims if the policy is a lapse.