Did You Know? Towing

Can Motor Vehicle Insurance policy cover the cost of towing cars? How is the process?

Refer to Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) Article 18 Salvage Charges states that:

Reasonable expenses incurred by the Insured, in the event of any loss and/or damage due to risks covered for protection, transport or towing to the workshop or another place to prevent or minimize such loss and/or damage. Reimbursement for such expenses shall not exceed 0.5% (half percent) of the Sum Insured. This reimbursement shall not be deducted by Own Risk.

If the towing arrangement is made by the Insured, its cost can be reimbursed to Insurer as long as the expenses incurred are still reasonable and its purpose is to avoid greater losses. The Insured can apply for reimbursement to the Insurer by submitting an invoice with stamp duty as proof of payment of the Insured to Towing party.

Example:

The sum Insured Hull of Insured XYZ’s vehicle is IDR100,000,000,- so the towing fee guaranteed by the Insurer is a maximum of IDR500,000,-. If the towing fee paid by the Insured XYZ is IDR600,000,-, then the difference of IDR100,000,- will be borne personally by the Insured XYZ.

The Insured can also contact the Insurer to arrange the towing process, which the Insurer will appoint the towing PIC to assist. If there is a cost difference in this towing process, then the difference will be borne by the Insured as the example above.

If you require some assistance or further information regarding the claim, please contact us at 1500 – MSI (674), and it is a pleasure to assist you.