Indonesia’s heavy equipment industry is now dominated by Chinese products such as SANY, XCMG, Zoomlion, Liugong, Shantui, SDLG, Lovol, Lonking, and other major brands. These machines are known for their durability, efficiency, and competitive price, making them a prime choice for mining, construction, energy, and plantation projects.
However, behind this success, a new problem has emerged that is often overlooked — the mindset of looking for the cheapest insurance without paying attention to the quality of protection.
Many distributors and customers assume that as long as the heavy equipment is “insured,” they are safe.
Unfortunately, reality often proves otherwise. Low initial premiums can result in significant losses when claims are filed and denied.
This is where PT Liberty and General Insurance Broker (L&G Insurance Broker) comes in to provide a solution.
As an OJK-licensed professional insurance broker with over three decades of experience, L&G has helped thousands of Chinese heavy equipment companies obtain comprehensive coverage and ensured the smooth payment of large-value claims.
L&G doesn’t just place policies — we protect your investment value to keep it safe from even the biggest risks.
📞 Contact us at 0811-8507-773 or email to halo@lngrisk.co.id for consultation regarding Heavy Equipment Insurance that suits your business needs.
The Phenomenon of Low Premiums in the Heavy Equipment Market
In the face of fierce competition, many Chinese heavy equipment companies in Indonesia—both distributors and financing companies—are striving to reduce costs to maintain attractive selling prices. One common approach is to select insurance with the lowest possible premiums.
Usually the process is done by:
- Using the services of a personal agent or acquaintance who offers “special prices”.
- Purchasing a standard policy without fully understanding the terms & conditions (TC).
- Closing insurance without prior risk analysis.
However, low premiums almost always mean limited coverage. Such policies often exclude important risks such as:
- Damage when the tool is operating in the field,
- Drowning in a wet mining or project area,
- Landslides, fires, or floods,
- Loss of equipment when moving to a new location.
And when claims are filed, the answer that comes up is almost always the same:
“Sorry, this risk is not covered in your policy.”
Case Study: When Cheapness Ends in Disaster
Real examples that have happened (names changed):
A Chinese heavy equipment distributor sold 20 SDLG wheel loaders to a mining contractor in Kalimantan with a two-year financing system.
To keep costs down, insurance is covered through local agents at very low premiums.
Several months later, three units of equipment were submerged in floodwater. When a claim was filed, the insurance company denied coverage, claiming the policy did not cover flood and submersion risks.
The result: losses reached Rp 4.5 billion, the project stopped, installments were in default, and the distributor had to bear all the financial burden.
All because of cheap policies without professional support.
Why Cheap Premiums Often Backfire
Insurance premiums are always directly proportional to the risk coverage and reinsurance support behind it.
If the price is too low, then:
- Important clauses are removed to reduce costs (e.g.operational risk or flood coverage).
- The policy lost foreign reinsurance support because it was considered underpriced.
- Small agents don’t have the power to fight for large claims.
- No risk survey or equipment inspection was conducted prior to policy issuance.
All of these things open loopholes for insurance companies to legitimately reject claims on the grounds of non-disclosure or policy exclusion.
Common Mistake: Treating All Policemen the Same
Many distributors assume all heavy equipment insurance policies are the same. However, a single difference in wording can determine whether a claim worth billions of rupiah is paid or not.
| Clause | Cheap Police | Police Through Professional Brokers |
| Operational Coverage | Not guaranteed | Guaranteed as long as the tool is operating |
| Flood & Landslide | Excluded | Included in the warranty |
| Reinstatement Basis | There isn’t any | New replacement value |
| Loss Notification Period | 7 days | 30 days, more flexible |
| Claim Assistance | Not available | Accompanied by L&G’s team of claims experts |
The difference is clear: cheap policies look attractive on paper, but fail to protect when needed.
The Strategic Role of L&G Insurance Broker
As an OJK-licensed independent insurance broker, L&G is not only tasked with placing policies, but also providing strategic and technical assistance to ensure coverage is appropriate to the conditions of the heavy equipment industry in Indonesia.
Some of L&G’s key services include:
- Risk Survey & Initial Analysis: inspection of equipment condition, project location, and risk profile.
- Wording Engineering: drafting policy clauses and conditions relevant to heavy equipment operations.
- Premium & Reinsurance Negotiation: ensuring competitive premiums without compromising on coverage.
- Full Claims Support: L&G’s technical and legal teams oversee the claims process from start to completion.
- Real-Time Digital Reporting: through the LIGASYS system, clients can monitor policies, premiums, and claims transparently.
L&G’s Real-Life Proof and Reputation
For over 30 years, L&G has handled more than 2,000 units of Chinese-made heavy equipment in various mining, energy, construction, and plantation projects throughout Indonesia.
Dozens of large claims worth billions of rupiah have been resolved professionally and on time.
Supported by an experienced technical and legal team and an extensive network of global insurance and reinsurance companies, L&G is a trusted partner for many heavy equipment companies in Indonesia.
All of our activities are directly supervised by the Financial Services Authority (OJK), guaranteeing the legality and credibility of our services.
Benefits of Working with a Professional Broker
By partnering with L&G Insurance Broker, the Chinese heavy equipment company obtained:
✅ Comprehensive protection against operational, environmental and transportation risks.
✅ Guaranteed claim will be paid in full because the wording is prepared technically and legally.
✅ Long-term efficiency — no major losses due to claim rejections.
✅ Maintained business reputation in the eyes of principals, customers, and financing institutions.
Conclusion: Cheap Now, Loss Later — Unless You’re With L&G
In the heavy equipment industry, risk is inevitable — but it can be managed intelligently.
Cheap premiums are tempting, but without adequate protection, you are only buying a false sense of security.
With L&G Insurance Broker, every rupiah of premium turns into a real protection investment.
We ensure your policies are strong, your claims are paid, and your business keeps running.
Don’t let cheap insurance destroy your business.
Contact L&G Insurance Broker — a trusted risk partner for the Chinese heavy equipment industry in Indonesia.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773 (CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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