May 31, 2023

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Tips For Burnt Car Insurance

Have you ever imagined your car on fire? This is indeed terrible, but it’s not impossible that it could happen to your car. As a car owner, of course you never imagined that your own car would suddenly catch fire. But what can I say, it could have come at an unexpected time. We certainly don’t want when we leave the car in the parking lot, it suddenly catches fire due to ignorance. The worst thing is when the car is being driven and suddenly catches fire, material losses up to life are threatening. For this reason, it is necessary to understand the procedures and coverage system for a car that is on fire. Julian Noor, Executive Director of the Indonesian General Insurance Association (AAUI) also explained about burning vehicle insurance. According to him, the majority of motorized vehicles in Indonesia are generally purchased through the credit system.

Purchasing a car using a credit system automatically gets an insurance guarantee facility from a finance company. Julian explained that there are two types of vehicle insurance, namely a comprehensive system and total loss only (TLO) or total loss insurance. “For fire cases, if you choose comprehensive insurance, it means that insurance claims are borne based on the losses experienced. This means that more or less the parts that are burned will be covered according to the applicable regulations. The premium for comprehensive insurance is certainly higher than TLO,” said Julian.

Meanwhile, for the TLO insurance system, Julian emphasized that insurance claims made can be accepted if the loss experienced is above 75% of the vehicle price. “This incident was certainly not intentional. Claims can be made if a fire occurs accidentally. Fires with up to 75% damage can be covered, all that’s left is to report to the finance company if it’s the credit, they’ll take care of it later,” he said.

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