The car theft rate is quite high in Indonesia. It therefore seems logical that we as drivers and vehicle owners offer our vehicles maximum protection, for example this type of vehicle insurance. Then it turns out that a lot of things shouldn’t happen when other people are driving.
Of course, if you encounter this situation but your vehicle is covered by a certain type of car insurance, this is not a problem. Because even if you do not drive the car directly, the car insurance applies.
Since there is one type of auto insurance that has coverage for as long as you lose your vehicle to theft, the insurance will remain in place even if your vehicle is lost somewhere and who is driving it.
Just make sure that as the owner of the vehicle or whoever is driving it, you immediately report that you have actually suffered a loss. In this case, the insurance company will carry out a replacement, but this must first be proven.
The thing that makes insurance refuse
However, the insurance company is not allowed to replace a lost car. When the car is loaned and then lost with the driver. This is classified as embezzlement, so the insurer will not accept the claims submitted. So what can cause your auto insurance to be rejected?
Inactive policy (lapse)
Auto insurers can be inactive due to various circumstances. This inactive state is also known as decay. The insurer is unwilling to pay an insurance claim if the policy expires and the claim is denied. So there are two examples of the state of a policy that is forfeited and a car insurance claim is denied.
Auto insurance premium payments are due
Each insurance can have a different grace period. There are a maximum of approximately 30 days to 45 days. If the car damage occurs after this period, the car insurer is not liable for any damage suffered by the policyholder. Pay the insurance premium on time or in any case only after the grace period has expired.
Unified insurance policy
If the insurance policy is in the form of a unitary link, the policy can be considered to have expired if the cash value of the insurance does not cover the insurance costs. There are at least two reasons for this inadequate cash value, namely poor investment performance and frequent cash withdrawals. To avoid this, it is a good idea to top up at some point when investment performance is poor. Also, make sure you don’t cash out the value unless you are in an emergency at times.
Claims are not mentioned in the clause
The insurance includes an agreement that contains the criteria for what is and what is not insured. What is meant by TLO car insurance can vary from one insurance company to another. It can be at least 70%, 75% or even 80%. The insurance therefore does not cover the damage financing if the damage does not reach the agreed percentage.
Claims are overdue
Auto insurance claims can be delayed or even rejected if claims processing exceeds the time specified in the policy. The insurance company always offers a certain deadline for processing claims. This could result in the claim being denied. Car insurance claims must be processed immediately as the deadline is short and only 3 x 24 hours. In the meantime, the term for insurance such as life insurance is between 30 and 60 days.
Make sure you are familiar with all of the documents that need to be provided in order to file a claim. If the document is missing, the insurance will reject the claim. For example, life insurance requires a doctor’s statement.
Friends must carefully follow the procedure. If the submitted claim is a car insurance claim, please take photos of the car damage. This photo is one of the pieces of evidence when you want to make an insurance claim. Then prepare the full documents, starting with a photocopy of the insurance policy, a copy of the SIM and STNK and of course the application form. A police certificate may also be required for serious damage.
Fill out the form very well, fill it out honestly and clearly, as the insurance company will review it later. You will not pay a claim if the application form is proven to contain lies. Another no less important procedure is to carry out repairs in partner workshops. The same applies to visiting a hospital to which the insurance relates. It is not permitted to carry out repairs or treatments in locations outside of the auto insurance reference.
Submission claims are exempt
In addition to regulating matters that include insurance cover, the policy also provides for exceptions. These exceptions are things that are not covered by car insurance. In life insurance, these exceptions include death from suicide, judicial punishment, or crime.
In auto insurance, the exceptions that reject a claim include vehicles that are not functional or have been modified without notifying the insurer. An example of a vehicle that does not operate as described is the use of a motorcycle to transport goods that exceed its capacity.
Whenever changes are made to motorized vehicles, you should always notify the insurance company and ensure that changes are allowed. Don’t let non-standard changes be the cause of the accident. In this case, the car insurance will not cover the repair costs.
Policyholders are breaking the law
Another reason a car insurance claim is denied is because the policyholder is breaking the law. For example, if he has all-risk auto insurance and his car has an accident due to recklessness or traffic violations, he will not be able to make a claim. The same applies if the policyholder does not have a SIM card while driving, is parked somewhere and is drunk.