All About Traffic Accident Insurance You Must Know

Traffic accidents are an unavoidable risk for every driver on the road. To maintain your safety on the road, traffic accident insurance is invaluable protection. In conditions where the number of traffic accidents is quite high in Indonesia, the need for accident insurance becomes very important.

Having traffic accident insurance can provide significant benefits, covering medical costs, care, and compensation for the insured in a traffic accident situation. With various policies and benefits, this insurance not only provides financial protection but also provides security guarantees.

So, how do you get traffic accident insurance? See the explanation about the importance of insurance and how to claim it below.

Definition of Traffic Accident Insurance & its Difference from Life Insurance

Facing the risk of accidents is an inseparable part of life. Careful preparation is required to overcome these unexpected situations. Life/personal insurance and accident insurance are emerging as financial instruments that can provide financial protection. So, what's the difference?

Self-insurance, or life insurance, provides primary financial protection in the event of death. If the person concerned dies, this insurance provides financial security to the family or heirs. Apart from that, self-insurance benefits are also a replacement for income lost due to death. Additional benefits, such as refunds of premiums or accident insurance, may be part of a life policy.

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Accident insurance, on the other hand, provides compensation related to traffic accidents. It covers the costs of medical care and provides income replacement if the insured suffers permanent disability or death due to an accident. Accident insurance can help overcome financial burdens incurred in connection with medical treatment or replace lost income.

Why is Traffic Accident Insurance Important?

Traffic accident insurance is not just about paying premiums; it also provides significant benefits to policyholders. These benefits include death benefits, permanent disability benefits, and coverage for medical expenses.

1. Death Benefit

Traffic accident insurance provides cash compensation if the insured dies as a result of a traffic accident. The amount of compensation is equivalent to the sum assured previously agreed in the insurance policy. This compensation will be given to the insured's heirs.

2. Permanent/Total Disability Compensation

Apart from death compensation, traffic accident insurance also provides cash compensation when the insured experiences permanent or total disability due to an accident. The amount of this compensation varies, from 5% to 60% of the agreed sum insured. The amount depends on the level of permanent or total disability suffered by the insured.

3. Treatment Cost Coverage

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Another benefit provided by traffic accident insurance is coverage for treatment costs. If the insured has an accident and requires medical treatment in a hospital, the costs of this treatment will be borne by the insurance company. The insurance company will cover the care and treatment bills in accordance with the provisions of the policy. The amount is adjusted to the agreement in the insurance policy.

Jasa Raharja Traffic Accident Insurance Compensation Claim Procedure

Jasa Raharja, as a State-Owned Enterprise (BUMN), which covers traffic accident insurance for Indonesian citizens (WNI), provides protection through compensation. How do you claim this compensation?

Steps to Claim Compensation for Raharja Services

1. Fill out the form with complete data about the accident.
2. Include valid documents or evidence related to the accident.
3. Jasa Raharja will examine the documents provided before starting the compensation claim process.
4. Report the accident to get an official report. This could involve a police report or other authorized agency, such as PT KAI for train users and Harbor Master for ships.
5. Apply for compensation to the Jasa Raharja office by filling out the form and completing the requirements, such as:

Basic Documents for Raharja Services Compensation Claims:

• Accident certificate from the Police Traffic Traffic Unit or similar authorized agency.
• Health or death certificate from the hospital.
• Personal identity of the victim (KK, KTP, Marriage Certificate) and visit the Jasa Raharja office:

1. Fill in the compensation application form, brief accident information, a health form, and information about heirs, if any.
2. Submit the form and supporting documents to the officer.

• For injured victims:

1. Include the police report and crime scene sketch.
2. Attachment of receipts for treatment costs, medicines, a photocopy of the victim's ID card, a power of attorney (if authorized), and a referral letter if moving to another hospital.

• For injured victims with disabilities:

1. Police report and crime scene sketch.
2. An attachment of a statement of disability from a doctor, a photocopy of the victim's ID card, and a photo of himself show the condition of permanent disability.

• For injured victims who died:

1. Include the police report and a crime scene sketch or accident report.
2. Attachment to a death certificate from the hospital or sub-district; photocopy of the victim's and heirs' ID cards; family card; marriage certificate (if married); birth certificate (if unmarried); receipt for medical expenses; referral letter (if moving hospital).

• For victims who died at the scene:

1. Include the police report and a crime scene sketch or accident report.
2. Attachment to a death certificate from the hospital or sub-district; photocopy of the victim's and heirs' ID cards; family card; marriage certificate (if married); birth certificate (if unmarried).

Amount of Compensation for Raharja Services for Traffic Accident Victims

Jasa Raharja provides compensation to traffic accident victims as a form of financial protection. Based on the Regulation of the Minister of Finance of the Republic of Indonesia No. 15 and 16/PMK.10/2017 dated February 13, 2017, the amount of compensation for victims of land, sea, or air traffic accidents is as follows:

• Death compensation: IDR 50,000,000.
• Permanent disability compensation (maximum): IDR 50,000,000.
• Maintenance compensation (maximum): IDR 20,000,000.
• Compensation for burial costs if the victim has no heirs: IDR 4,000,000.
• Compensation for additional benefits (reimbursement of first aid costs): IDR 1,000,000.
• Compensation for additional benefits (ambulance reimbursement): IDR 500,000.

When submitting an accident insurance compensation claim, make sure all documents and evidence of the claim are valid and complete. Apart from that, arrange a detailed accident chronology to make the claims process easier. Then, research and understand the exclusions listed in the insurance policy. This is important to avoid confusion or discrepancies in information that could affect the claims process.

Car Insurance for Severe Damage

Who doesn't worry when their favorite car suffers serious damage in an accident? It is not only about safety but also about financial matters. But did you know that even if your car is completely destroyed, there are still ways to claim car insurance?

In general, there are two types of car insurance: all-risk and total loss-only (TLO). But what's the difference?

1. All Risk: Involves protection against partial or total damage due to various driving risks. Whether it's from small scratches, dings, or serious accidents that cause the car body to be crushed.
2. TLO: Provides protection against the risk of loss, such as theft. Some TLOs also provide repair costs if the damage reaches 80 percent or above.

How do I claim insurance if there is serious damage to the car? Here are some important steps:

1. Immediately report the accident to the insurance company within three days. Don't wait long, because fast reporting makes the claims process easier.
2. Make sure you have all the necessary documents. Including a completely filled-out, signed Insurance Coverage Application Letter (SPPA) and vehicle documents.
3. Create an Accident Chronology: Arrange a detailed chronology of events. This helps speed up the claims process and makes it easier for insurance companies to assess accidents.
4. Know the exclusions in the insurance policy. Usually, you can get this information from the insurance company directly.
5. Important Tips: Provide complete data and documents so that claims can be processed smoothly. Pay attention to the classification of vehicle use (whether for personal, business, or commercial use).

So, even if your car has a serious accident and is damaged, an insurance claim can still be made. However, remember that the claims process depends on the provisions of the insurance policy and the insurance company's damage assessment. For this reason, protect yourself and your family with the right knowledge about traffic accident insurance claims.