What is TLO Insurance? This is the difference with All Risk

 

TLO insurance is a type of motor vehicle loss insurance.

TLO insurance is a type of insurance for motor vehicles that may often be offered when you buy a motorbike or car.

Increasingly congested traffic conditions and the high risk of mobility often make most people feel worried.

What if something unexpected suddenly happens? To overcome this, you can choose various types of motor vehicle insurance , one of which is total loss only or TLO.

Actually, what is TLO insurance and how is it different from other types? Come on, see the complete review in the following article!

What is TLO Insurance?

TLO insurance is insurance that covers the cost of repairing a car or motorbike with total damage above 75%.

In other words, TLO insurance is insurance that provides a guarantee of replacement costs if your vehicle is lost or damaged in a condition above 75%.

For example, if your vehicle hits a road divider and causes damage to the car's bumper, then this car's TLO insurance cannot be claimed.

This is because the damage that occurs only affects a small part of your car, not reaching the minimum limit for getting a TLO insurance claim.

This is different from when you are in a public location and park your car in the right place and then it goes missing, only then can you claim this TLO insurance.

As the abbreviation suggests, TLO insurance means insurance that is provided when your vehicle experiences major damage and it is almost impossible to repair it so that it can function properly.

Differences between TLO and All Risk Insurance

As explained, TLO insurance is a replacement guarantee if your vehicle suffers damage exceeding 75% of its value.

This is the main difference between TLO and all risk insurance, where all risk or comprehensive insurance can pay claims for all types of damage, from light, heavy, to loss.

TLO motorbike and car insurance premiums are relatively small compared to all risk,comprehensiveprotectionis more optimal.

All risk insurance provides promising protection because the insurance company will replace all or part of the cost of car damage.

Meanwhile, for TLO car insurance, even though the premium is cheap, if the car has an accident below 75% then it is not the responsibility of the insurance company.

In addition, regarding the coverage and requirements of TLO insurance, it is only loss or damage of more than 75%, maximum car age of 15 years, towing services, and Autocillin mobile claim .

Meanwhile, all risk insurance covers almost all services and all types of damage, including guaranteed compensation for loss due to theft and renewal of vehicle registration.

TLO Insurance Premium

The range of TLO insurance premiums is between 0.2% and 0.69% of the customer's vehicle price and is paid once to obtain protection for a full year.

You can calculate it based on the Financial Services Authority (OJK) circular letter Number 6/SEOJK.05/2017.

The provisions related to this premium include price differences adjusted to the type of vehicle and region.

The TLO car insurance rate table and calculation simulation are as follows:

Category	Sum insured	Region 1	Region 2	Region 3
Category 1	IDR 0 - IDR 125 million	0.47% - 0.56%	0.65% - 0.78%	0.51% - 0.56%
Category 2	> IDR 125 million - IDR 200 million	0.63% - 0.69%	0.44% - 0.53%	0.44% - 0.48%
Category 3	> IDR 200 million - IDR 400 million	0.41% - 0.46%	0.38% - 0.42%	0.29% - 0.35%
Category 4	> IDR 400 million - IDR 800 million	0.25% - 0.30%	0.25% - 0.30%	0.23% - 0.27%
Category 5	> Rp800 million	0.20% - 0.24%	0.20% - 0.24%	0.20% - 0.24%

The premium rates and contributions for vehicle insurance are also adjusted according to location, such as:

• Region 1: Sumatra and surrounding islands
• Region 2: DKI Jakarta, Banten, and West Java
• Region 3: Other than those included in regions 1 and 2

However, the costs above can increase if you add insurance protection for events such as:

• Earthquakes, volcanic eruptions, and tsunamis.
• Storms, hurricanes, hail, landslides and floods.
• Personal accidents involving passengers and drivers.
• Legal liability towards third parties.
• Riots and unrest.

TLO Insurance Premium Calculation Simulation

In general, the calculation of TLO insurance premiums is based on the insurance rate multiplied by the purchase price.

For example, from category 2 types of cars with coverage above IDR 125,000 to IDR 200,000 for region 2 with a limit of 0.44% to 0.55%.

So, the TLO insurance premium calculation is IDR 200,000 x 0.53% = IDR 1,060,000

So, the premium that must be paid annually by the car owner is IDR 1,060,000.

How to Claim TLO Insurance

Can TLO insurance be cashed? Yes, you can report a claim by contacting the insurance company.

After that, prepare the required documents and fill in the form according to the instructions. Apart from that, you can also visit partner workshops.

One of the requirements needed to make a TLO insurance claim is that you must prepare a car insurance claim.

There are several stages in how to claim TLO insurance, including:

1. Reporting a Loss Claim

Report the loss experienced within 5 working days after the incident. You can report the claim through:

• Call center of selected insurance company
• Online application provided by the insurance company

2. Prepare Documents

There are several TLO insurance documents required, including:

• Insurance documents according to the product
• Completed claim form
• Send the insurance documents via email or post to the insurance company
• Also include photos taken after the incident that caused the loss

3. Check partner workshops

Go to a repair shop that is registered as the nearest insurance partner. You can find out via the online application or contact the call center.

4. Waiting for Confirmation

After completing the entire process above, you just need to wait for confirmation from the insurance company.

If the insurance claim has been approved, your car will be repaired immediately.

TLO Insurance Claim Tips

Submitting a TLO insurance claim is a process that often gets rejected by the insurance company.

This is usually caused by several things that you did not fulfill previously.

So, in order for your TLO insurance claim to be accepted, make sure to do the following things.

• Insurance claims must be processed immediately because the time limit is only 3 x 24 hours.
• Complete the driver's documents starting from car photos, police certificate, photocopy of driving license and vehicle registration, incident documentation and claim submission form.
• Make sure not to commit any violations of the law, such as traffic violations and not having a driver's license.
• Pay attention to the area of ​​the accident which must be in accordance with the area clause in the insurance agreement.
• If the car is modified, please report it to the insurance company and attach the insurance value of the accessories.
• Avoid things like deliberately damaging your vehicle, crashing it into another vehicle, hitting it to make a dent, and driving into a flood and causing the car to break down.
• Make sure your car insurance policy is still valid.

That is an explanation of what TLO insurance is, the premium amount, how to claim, and the difference with all risk.

TLO insurance is one of the insurance options for motor vehicles that can be an option so that you do not experience the risk of loss due to unexpected events.

This insurance has a small premium value, so it can be a consideration for you to insure against the risk of damage to or loss of your vehicle.

Hopefully the information can help, OK? Get more articles about economics and business on MASWISNU.COM

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