Total Loss Only Car Insurance (TLO)

Total Loss Only Car Insurance (TLO)

Literally Total Loss Only (TLO) means "only (if) loses total". Means that insurance claims can only be filed in case of 'total loss'. In car insurance, the total loss is a damage that occurs above 75% or loss of theft or for plunder. If the damage suffered is less than that, you will not be compensated for damages. The 75% benchmark is taken because the car is definitely not usable. The surplus, TLO insurance premium is lower than all risk car insurance.

All Risk / Comprehensive Car Insurance

All Risk can be defined as 'any risk'. This insurance is also called Comprehensive or overall. This means insurance will pay claims for any kind of damage, ranging from minor damage, serious damage, to loss. Unlike the TLO, a slight blister on the car, insurance will pay insurance claims. It's just that All Risk car insurance is more expensive than TLO.

In order not to choose wrong, you can compare All Risk car insurance and the best TLO car insurance for your vehicle. Bandiingkan best car insurance products from various leading insurance companies across Indonesia at cermati.com.

Below is a list of premium rates of All Risk Insurance set out in OJK Circular Letter no. 6 / SEOJK.05 / 2017.

How is All Risk and TLO Car Insurance Premium Calculation calculated?

Every car insurance may have a varied policy. In general, how to calculate TLO and All Risk car insurance premiums is based on the insurance rate multiplied by the price of the car. The rate as presented in the table above is not the same for each region and category. Then, what is the current premium rate and how to calculate it?

For example, you have a Toyota Avanza variant of 1.3 G M / T worth Rp206 million. Because you are ID card Jakarta, of course if taking the TLO insurance, your car entered Region 2 with insurance rate category 3 that the amount of 0.38% -0.42%. The premium fee you pay is:

0.38% x Rp206,000,000 = Rp782.800
Meanwhile, if you take the insurance of All Risk with insurance rate category 3 of 2.08% -2.29%, premiums to be paid are:

2.08% x Rp206,000,000 = Rp4.284.800
The amount of insurance premium cost TLO or All Risk above will still be added with administrative costs, policy costs, stamp duty, and other costs. Based on the above calculation, All Risk insurance premium is greater than TLO. You need to provide more funds if you want to get an All Risk car insurance policy.

Such price differences can make potential buyers insurance policies confused. Want a cheap one, but who will pay in case of minor damage? Want the expensive, but what if the insurance money will eventually burn? Insurance premiums are paid only once, but insurance protection is only valid for one year.