Deductible or Own Risk (usually abbreviated OR) for new customers is often ignored or poorly understood. In fact, when you’re reading a car insurance offer or are reading the front page content of your car insurance policy, you’ll find the term deductible or your own risk.
Deductible is the amount of fee that the insurance policy owner pays if a claim is made. For example, your car is damaged by accident with a loss of Rp5 million and your deductible of Rp300 thousand, you only need to pay Rp300 thousand deductible to repair your car. While the remaining Rp4, 7 million is borne by the insurance company.
The higher the premium paid, the deductible cost becomes lower and vice versa if the premium cost is low, the cost of deductible becomes high.
Deductible calculations follow several provisions, including:
Every claim, insurance customers are required to pay a deductible fee.
The type of claim that the deductible will incur is only an insurance claim incurred due to physical damage.
The cost of deductibles will not apply to nonphysical losses, such as the consequences of lawsuits
The provisions concerning this deductible have the following purposes.
The existence of the deductible makes every vehicle owner more careful in driving his vehicle.
Due to the cost of deductibles, clients become aware that the insurance they have is not 100% bear the cost of car repairs.
Keep away from the small losses that are often the value of greater loss if calculated into one.
To avoid the relatively small claims administration process. Imagine, if for example a loss of Rp50,000 can be claimed, whereas the claim process requires several conditions, especially in the case of proof. Could be the cost of proving it can be very much more expensive than the claim value. To that end, deductibles can serve to avoid the small claims administration process
The magnitude of Deductible and its calculations
The amount of deductible or risk itself depends on the insurance company’s policy. However, the following fees apply generally:
All Risk: Rp300.000 per incident
Melee: 10% of the value of the claim, at least Rp500.000
Examples of Own Risk Cases of All Risk Insurance
Precisely Indra Kusuma is the customer who took the car insurance policy All Risk / Comprehensive. At one point, the car hit a roadblock causing the rear of the car to break down.
Precisely Indra Kusuma make insurance claims. After all administrative process is complete, the car is referred to the insurance partner’s workshop. After one week, the car repair process is complete. When taking his car, Indra Kusuma Cermat billed by the workshop for Rp300.000 which is intended as a deductible or own risk or own risk.
Examples of Individual Risk Risk Cases
Precisely Indra Kusuma besides taking the car insurance policy All Risk also equip it with the expansion of melee risk. At one time there was a riot around the parking lot that resulted in the car hit by throwing stones some fruit and broken glass windows.
Then Cermat Indra Kusuma made a claim. Once checked, the estimated cost of repairing the car is Rp10 million. After all administrative process is complete, car careful referred to the insurance company’s partner shop. After one week, the car can be taken. When picking up the car, Cermat is charged money by the workshop for Rp1,000,000 (10% x Rp10 million) as a deductible or own risk.