The logistics industry in Indonesia is experiencing significant growth, particularly with the rapid growth of e-commerce and retail distribution, as well as the increasing need for transportation of raw materials and products. Indonesia’s geographical location, consisting of thousands of islands, means that goods distribution relies on a combination of sea, air, and land transportation. Of these modes, land vehicles such as trucks and logistics buses form the backbone of the supply chain.
For logistics companies, fleet ownership is not just an asset, but a key foundation for business continuity. However, fleet operations are also fraught with risks, ranging from traffic accidents and damaged goods to natural disasters. Therefore, commercial vehicle insurance is a strategic necessity, not just an add-on.
The most frequently asked question from industry players is: how much does commercial vehicle insurance premium cost for logistics fleets? The answer isn’t simple, as many factors influence it. This is where an experienced insurance broker like L&G Insurance Broker becomes crucial, helping companies obtain competitive premiums with optimal protection.
Contact L&G Insurance Broker now at Phone number 08118507773 for a free consultation before the risks haunt your business.
Recognizing the Types of Logistics Fleets
Logistics fleets in Indonesia vary widely depending on the type of goods transported and the distribution routes used. Some commonly used fleet types include:
- Light trucks
- Pickup, box, or single axle. Used for short-distance distribution in urban areas.
- Medium trucks. Such as the Colt Diesel Double (CDD) and wingbox. Ideal for intercity or medium-distance distribution.
- Heavy trucks
- Trucks, trailers, and container carriers. Used for the distribution of large-volume goods or port containers.
- Special vehicles
- Tank trucks (fuel, CPO, liquid chemicals), refrigerated vehicles (frozen cargo). Requires additional protection due to the high-risk nature of the cargo.
- Buses and operational vehicles. To transport workers, employees, or other supporting needs.
Each type of fleet has a different risk profile, so the insurance premium costs are also not the same.
Risks Faced by Logistics Fleets
Logistics fleet operations face many potential risks, both from internal and external factors, including:
- Traffic accidents → collisions, rollovers, or brake failure.
- Risk of theft and robbery → especially in vulnerable distribution channels.
- Damage to luggage → due to accident or negligence.
- Vehicle fire → could be due to an engine short circuit or an accident.
- Natural disasters → floods, landslides, and earthquakes.
- Human error → driver fatigue, negligence, or violation of traffic rules.
All these risks can lead to major financial losses if not properly managed through insurance protection.
Example of a Logistics Fleet Accident Case
Some real incidents that often occur in the logistics industry include:
- Container truck overturned on toll road → causing damage to vehicle, cargo and third party claims.
- Fuel tanker truck catches fire → causing losses of tens of billions of rupiah and potential legal liability claims.
- Multiple accidents involving logistics fleets → can result in large claims, including damage to the fleet, cargo, and third-party casualties.
These cases show how important it is to have proper insurance coverage to avoid major losses.
Types of Commercial Vehicle Insurance Policies
To protect the logistics fleet, there are several police options that can be used:
- TLO Insurance (Total Loss Only)
- Covers total loss of ≥ 75% of the vehicle’s value or loss due to theft.
- Premiums are relatively cheap, suitable for old or low-risk vehicles.
- Asuransi Comprehensive / All Risk
- Covers all damage, both small and large, including loss.
- Premiums are more expensive, usually chosen for new or high-value vehicles.
- Extension Insurance / Expansion of Guarantee
- Floods, earthquakes, volcanic eruptions.
- Riots, civil commotion, terrorism, sabotage.
- Legal Liability Insurance (TPL)
- Covers claims from third parties resulting from accidents involving the insured vehicle.
- Cargo Insurance
- Covers loss or damage to the goods being transported.
Logistics Fleet Insurance Premium Costs
The amount of commercial vehicle insurance premiums is determined by many factors, including:
- Vehicle types → light trucks vs trailers vs tanks.
- Vehicle age → the older it gets, the risks.
- Vehicle value → market price influences the amount of the premium.
- Type of coverage → TLO is cheaper than All Risk.
- Location & distribution routes → vulnerable routes increase risk.
- Claim track record → claim historyinfluencepremium amount.
Premium Estimates Based on OJK Provisions
- TLO (Total Loss Only) → around 0.20% – 0.50% of the vehicle value.
- All Risk / Comprehensive → around 1.00% – 3.00% of the vehicle value.
- Risk extension (flood, riot, earthquake, etc.) → additional 0.05% – 0.30% depending on the type of risk.
Simple simulation:
If a logistics truck is worth IDR 500 million:
- TLO: Rp. 1 – 2.5 million per year.
- All Risk: Rp. 5 – 15 million per year.
- With the extension of the guarantee: it can increase by IDR 500 thousand – IDR 2 million per year.
For large fleets (tens to hundreds of units), brokers can help with fleet arrangements so that premiums are much more efficient.
Fleet Insurance Claim Process
The claims process usually goes through the following stages:
- Accident report → immediately reported to the insurance company.
- Surveyors go into the field → assess the losses.
- Claim documents → include police reports, photos of the incident, vehicle documents.
- Insurance company approval.
- Claim payments → are made according to the policy.
A common problem is delayed claims due to incomplete documentation. Insurance brokers help ensure a faster and smoother claim process.
The Important Role of Insurance Brokers in Logistics Fleets
Insurance brokers such as L&G Insurance Broker act as consultants and strategic partners for logistics companies:
- Risk analysis → adapting the type of protection to the fleet profile.
- Premium negotiation → get competitive rates from various insurance companies.
- Fleet program → create policies for large fleets to be more efficient.
- Claims assistance → ensures claims are settled on time and according to the value of the loss.
- Risk management education → helps companies reduce potential future losses.
With the support of experienced brokers, companies get not only a policy, but also a comprehensive protection strategy.
Conclusion
Logistics fleets are vital assets supporting the growth of the distribution industry in Indonesia. However, the risk of accidents, lost goods, and natural disasters can lead to significant financial losses. Commercial vehicle insurance is the most effective protection solution, with policy options ranging from TLO to All Risk, and even extended coverage based on needs.
Premiums vary depending on vehicle type, age, value, and distribution route. For companies with large fleets, an experienced insurance broker like L&G Insurance Broker can help develop a fleet program, obtain more competitive premiums, and ensure claims are processed smoothly.
👉Don’t let risks hinder the smooth running of your business logistics.
Contact L&G Insurance Broker now for a logistics fleet premium simulation that suits your company’s needs.
DON’T WASTE YOUR TIME AND SECURE YOUR FINANCES AND BUSINESS WITH THE RIGHT INSURANCE.
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Website: lngrisk.co.id
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