What is TLO Insurance? Check Its Functions, Benefits, and Premiums
Choosing TLO or Total Loss Only insurance is often a choice to protect cars from various risks that may occur. So, what is meant by this type of TLO insurance? To find out, let's look at the following explanation.
Definition and Function of Total Loss Only (TLO) Insurance
In this first part, we will first discuss its definition. In general, the definition of Total Loss Only Insurance is a type of insurance that can provide protection for cars from the risk of loss.
Read Also: All Risk Car Insurance: Costs, Advantages & How to Claim
This protection will provide guarantees in the event of theft and also damage with repairs equal to or more than 75 percent of the vehicle's price before the loss occurs. Loss due to robbery or theft is considered a total loss.
Thus, the insurance company will be fully responsible for covering repair costs and guaranteeing the risk of loss. If the damage case is less than 75%, then no compensation will be received for the damage.
In other words, it can be concluded that this insurance has the function of covering loss and damage to vehicles exceeding 75%. For damage below that amount, no compensation or guarantee will be provided.
Advantages of Having TLO Insurance
There are several advantages that can be obtained for those of you who have this type of insurance. Here are various advantages.
1. Guarantee of Car Loss
Cases of vehicle theft or robbery can indeed happen to anyone. Therefore, every vehicle owner must always be willing and anticipate such things happening.
One way to protect oneself is by having TLO insurance. With this type, owners will receive a guarantee of protection against vehicle loss.
Policyholders can claim the loss by providing proof of loss. This proof can be in the form of a loss report from the police or CCTV footage.
2. Guarantee of Total Damage
The next advantage is that you can also obtain compensation when the vehicle suffers damage above 75% of its value. This compensation will be provided in the form of coverage because the damage of 75% makes the vehicle unusable or repairable.
3. Guarantee of Extension
Furthermore, as a policyholder, you will also receive coverage for costs if damage occurs due to slipping, collision, malicious acts, robbery, and accidents that change the shape of the car.
However, you can also apply for an extension of coverage if the loss is caused by sabotage, third-party liability, or natural disasters. The extension guarantee can be chosen by the policyholder according to their needs and budget.
TLO Insurance Premium
Regarding the premium price for the insurance, it can range from 0.2% to 0.69% of the vehicle's price. This premium only needs to be paid once to obtain vehicle protection for a period of 1 year.
The calculation of this premium has also been regulated in the OJK circular letter number 6/SEOJK.05/2017. This regulation includes price differences according to region and type of vehicle.
Regional Division
REGION 1: Sumatra and surrounding islands (W1)
REGION 2: DKI Jakarta, West Java, and Banten (W2)
REGION 3: Other than REGION 1 and REGION 2 (W3)
Sum Insured
Category 1, which is Rp0 - Rp125 million
Category 2, which is more than Rp125 million - Rp200 million
Category 3, which is more than Rp200 million - Rp400 million
Category 4, which is more than Rp400 million - Rp800 million
Category 5, which is more than Rp800 million
Premium Amount
|
Category |
Region 1 |
Region 2 |
Region 3 |
|
Category 1 |
0.47% - 0.56% |
0.65% - 0.78% |
0.51% - 0.56% |
|
Category 2 |
0.63% - 0.69% |
0.44% - 0.53% |
0.44% - 0.48% |
|
Category 3 |
0.41% - 0.46% |
0.38% - 0.42% |
0.29% - 0.35% |
|
Category 4 |
0.25% - 0.30% |
0.25% - 0.30% |
0.23% - 0.27% |
|
Category 5 |
0.20% - 0.24% |
0.20% - 0.24% |
0.20% - 0.24% |
