Insurance Can Deny Claims for Riot-Damaged Cars

KatadataOTO – Riots that have occurred in several regions have caused many losses, both in terms of lives and material. Since the mass actions began, a number of vehicles, especially cars, have become victims.

Luxury cars, like those collected by people such as Ahmad Sahroni, have also become targets of mob rage. These losses are certainly quite severe for some people.

Although the car is insured, it is important to remember that the insurance company may not be willing to cover it. This is because, based on the Indonesian Standard Motor Vehicle Insurance Policy, damage resulting from mass action or riots is part of the exclusions

In article 3.1, it is stated that this coverage does not guarantee loss, damage and/or costs to the Motor Vehicle and/or legal liability to third parties directly or indirectly caused by, resulting from, or arising from riots, strikes, lockouts, brawls, civil commotions, popular uprisings, seizures of power, revolutions, rebellions, military power, invasions, civil wars, wars and hostilities, treason, terrorism, sabotage, or looting.

Photo : Antara

“How can it be guaranteed by insurance? Consumers must add a coverage extension so that if a risk occurs due to certain cases, the company can still cover it,” said Laurentius Iwan Pranoto, Head of Communication and Customer Service Management at PT Asuransi Astra to KatadataOTO (30/08).

Therefore, before unwanted events occur, vehicle owners are advised to re-check their policies. This is so that misunderstandings can hopefully be avoided in the future.

“Because it is an extension, there will be an additional premium of around 0.1 percent of the coverage. So it's actually not too large, depending on each insurance company,” he then added.

Not only that, he reminded that drivers are still obliged to avoid riot locations. If not, the claim could be rejected by the company.

Photo : Special

“So if it is already guarded by officers or a danger sign has been posted, do not force your way in or break through. Besides being dangerous for ourselves, it can also cause the insurance not to cover it,” he stressed.

This is in accordance with article 4.5 which states that this coverage does not guarantee loss, damage and/or costs to the Motor Vehicle and/or legal liability to third parties if entering or passing through a closed, prohibited road, one not intended for Motor Vehicles, or violating traffic signs.