Sunday, March 17, 2019

Understanding insurance of motor vehicles

America's total number of motor vehicles are now more and more. It is also aware of the company's insurance company to issue motor vehicle insurance product for the people of USA. Before you choose a good insurance company for motor vehicles it's good you know in advance understanding of motor vehicle insurance and the type of the type of damages in the liability insurance.




Understanding insurance motor vehicle is insured against loss or damage of motor vehicles. In principle, its warranty is against damage of the motor vehicle itself and the responsibility of the law against the other party are harmed while using the vehicle.

Motor vehicle law – Road Freight traffic Act No. 14/192, article 1 paragraph 7 is the vehicle that was driven by the engineering equipment in the vehicle. Motor vehicle insurance policy Wording used in USA is the standard warranty terms compiled by the insurance Council of USA and is used by all insurance companies operating in USA.

Motor vehicles have been manufactured and marketed circa 1880 's. But the insurance has not needed the time because the character of the vehicle at that time not yet harm. However had noted also believe is that insurance transactions have been made during this period by the number of transactions that are minimal.

Note the development of the insurance in the United Kingdom can be used as a pioneer of the development of the next. In 1930, the United Kingdom enacted Legislation – the so called Road Traffic Act which requires that the driver of the vehicle to pay compensation to the other party are harmed.

Since that time, the insurance becomes the most efficient options to address the potential risks that may occur. On Road Traffic Act revised, final responsibility is insurance requisite must be owned to be driving in the United Kingdom.

In USA, the traffic laws in force also includes determining that every driver should be responsible for the losses of the other party who is not guilty. Ironically, the general public who buy insurance is not aimed at protecting from the demands of the other party, but was more worried about the need to care for the vehicle to keep it smooth. This condition occurs because the parties are experiencing disaster not so disputed claims for losses incurred.

USA society generally viewed the losses experienced by disaster, good for small losses to fatal losses like death.

the basic insurance coverage to motorists in the guarantee insurance company
Basic coverage conditions can be guaranteed by an insurance company consists of:

1. Damage to vehicle

2. Responsibility of worship, which consists of:

a. the legal responsibility of the third party

b. the legal responsibility of passenger


Given the insurance coverage for motor vehicle insurance can be distinguished into 2 IE:

1. Composite or Comprehensive

This coverage on call All risk, although the term was not entirely correct, because there is also a risk the risk is excluded. Called Comprehensive or composite because this type of warranty offered with the tangggung Jolt against the other party or parties to a 3.

Loss or damage can be replaced by insurance ranging from loss due to scratched, dented, missing parts of the vehicle up to a total loss. Any claim will cost you own risk which is costs that must be incurred by the policyholder at any time claim at the time of the incident.

2. or TLO Total Loss Only

With this coverage guarantees continue to use terms such as risk on comprehensive coverage, but losses can be replaced in case of total loss of the amount of the loss has exceeded 75% of the market price of such vehicles.

Because the new replacement can be obtained after the damage or loss, surely this kind of coverage is cheaper than the kind of comprehensive. Usually, the amount of the premium reached 50% even lower premium compared to the kind of comprehensive.

Types of causes of damage to vehicles in the insurance guarantee
For motor vehicle insurance, there are provisions regarding the risks covered up vehicle that became the object of protection. Details of the risks covered are as follows:

1. Loss/damage vehicle, caused by:

Collision, collision, reversed, slipping off the road
The evil deeds of others
The theft of the vehicle or equipment
Loss due to fire
Perit struck
The damage at the time of the carriage

2. third party legal liability

The risk of damage to vehicles that are not in the guarantee insurance
In addition to the risks – risks that are guaranteed as described above, there is also a risk of exclusion or not guaranteed, namely:

The wage gain/lost/decreased value of other financial
Non standard equipment theft
Damage or loss due to embezzlement
Loss due to the evil deeds of husband/wife, the family of the insured, the insured, or instruction to people working on the insured
Pulling or pushing other vehicles, to race speed
Learning to drive, pulled the trailer
Excess charge
Executed in a State of broken
Piloted by someone who doesn't have a DRIVER'S LICENSE
Sign in/through the closed or forbidden
Of goods – goods are transported
Nuclear radiation, radio-active contamination, the reactions of atomic nuclei
War, invasion, foreign enemy action, civil war, rebellion, civil/military upheavals, intrusions, terrorism, the use of violence, revolution, takeover of power
Riot strikes or public order disturbances
Wear and tear
Property that is loaded or unloaded
Earthquakes, volcanic eruptions, hurricanes, storms, floods, puddles or geology or other meteorological

Each policyholder can request an expansion of the insurance guarantee on top of vehicle dipertanggungkan. Extension of the guarantee varies for each insurance company. To get the extension of warranty coverage, the insured must pay an additional premium amounting to a specific rate. As for the expansion of common guarantees are:

1. Medical expense, namely the cost of treatment for the driver and passengers in a specified amount.

2. Personal Accident

3. the guarantee Extension riot, terrorism, sabotage

4. the guarantee Extension flood

In the motor vehicle insurance, premiums must be paid in full in advance within 14 days since the rise of the polis. If not, then the enactment was delayed coverage by the insurer without prior notice and in case of a motor vehicle losses, the insured accouted for not able to claim and obtain compensation.

The delay will expire 24 hours after the premium received by the insurer. When up to 90 calendar days since the publication of the policy premium is not paid by the insured, then the policy will be cancelled automatically.

In terms of filing claims, the insured is obliged to notify in writing or orally, followed a written report if there are losses on the accountable motor vehicles latest 3 days since the incident.

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