Truck Overturns, Damages Property! A Chinese Businessman Makes a Costly Mistake in Choosing the Wrong Insurance Agent

A trailer truck was traveling on the slippery road between Surabaya and Jakarta, carrying imported Chinese electronics worth Rp 12 billion. Everything was going smoothly until heavy rain fell, and the truck lost control on a sharp bend. In an instant, the vehicle overturned, its cargo crushed, and parts of it scattered across the road.

The logistics manager panicked. He immediately contacted the insurance company, believing that all the cargo was covered by a policy purchased through a local agent. However, after several weeks of investigation, the results left everyone speechless:

“The claim cannot be paid because the goods are not insured with the clause transit all risks and not mentioned in the delivery schedule.”

This means there is no compensation whatsoever.
The loss of Rp. 12 billion must be borne alone.

After further investigation, it turns out that the policy only covers basic risks such as fire and major collisions — not transit risk This error occurs because insurance agents don’t understand the characteristics of the cross-provincial logistics and cargo business.

This isn’t an isolated incident. Many Chinese business owners in Indonesia face the same challenges—rejected claims, limited warranties, and unsatisfactory service.

Why Many Chinese Businesspeople Lose Money Due to Insurance

In the logistics and transportation business, risks can arise anywhere: on the road, at the port, in the warehouse, even during the loading and unloading process.
However, many Chinese businessmen still consider that insurance can be handled by local acquaintances or agents they trust without checking their legal status.

However, according to OJK (Financial Services Authority) regulations, only authorized insurance brokers are permitted to provide advice and represent the interests of insured (customers). Agents have no authority or responsibility to assist with claims.

Common mistakes that are often made include:

1. Purchasing a policy through an agent without official OJK permission.
2. Does not include detailed shipping routes in the policy.
3. Using an insurance value below the actual price of the goods.
4. Not adding important clauses such as:

• All Risks Transit Coverage
• Loading & Unloading Clause
• Temporary Storage Clause
• Debris Removal Clause

As a result, when an accident occurs, claims are difficult to accept because the policy contract does not match field conditions.

Two Real Cases, Two Different Fates

📍Case 1 – Local Agent, Claim Failed to Pay

A Chinese export company in Batam insured its electronics cargo through an agent without OJK permission. When the shipping company was delayed and some of the goods were damaged by moisture, the claim was rejected. The reason: there was no clause condensation damage and no listed delay extension.
Loss: Rp. 8.5 billion.

📍Case 2 – Accompanied by L&G Insurance Broker, Claim Paid in Full

A Chinese logistics company in Cikarang insured heavy equipment cargo for a project in Kalimantan. L&G conducted a thorough risk analysis, examining shipping routes, vessel conditions, transit times, and weather risks.
The policy then added a clause:

• Marine Cargo All Risks,
• War & Strikes Clause,
• Loading & Unloading Clause,
• Temporary Storage Extension.

When one of the trucks skidded off a bridge and caused Rp 5.2 billion worth of damage to equipment, the claim was paid in full within 30 days.

The difference in results is clear: brokers work for clients, agents work for insurance companies.

What is the Difference Between an Insurance Agent and an Insurance Broker?

Many foreign entrepreneurs do not yet understand the structure of the insurance industry in Indonesia.

According to POJK No. 69/POJK.05/2016 and POJK No. 24/2023:

• Insurance agents represent insurance companies and are responsible for selling products.
• Insurance brokers represent the insured (customer) and are responsible for protecting the interests of the business, including in the claims process.

In other words:

The agent sides with the insurance company, while the broker sides with you, the business owner.

Therefore, if you are a Chinese entrepreneur in Indonesia, using an agent who is not licensed by the OJK means putting your business at great risk.

Real Risks in the Logistics Business

The logistics and transportation business has a very complex combination of risks:

• Road Accidents – Trucks roll over, crash, or are damaged due to road conditions.
• Damaged Goods – Goods damaged due to shock, water, or mishandling.
• Theft & Robbery – High risk on land routes and ports.
• Late Delivery – May result in contractual penalties.
• Natural Disasters – Floods, landslides, or storms that stop operations.
• Without well-structured insurance support, one small accident can wipe out an entire year’s profits.

Why L&G Insurance Broker is the Best Choice

As an official insurance broker registered with the OJK, L&G Insurance Broker has over 30 years of experience protecting transportation and logistics businesses throughout Indonesia.

L&G services and advantages include:
✅Professional risk assessment before the policy is issued,
✅Negotiate the best premiums with local & international insurance companies,
✅Complete protection clauses according to business characteristics,
✅Claims assistance until payment is complete,
✅Digital and multilingual services (Mandarin, English, Indonesian) to facilitate communication with Chinese entrepreneurs.

Some of L&G’s clients come from the sectors:

• Distribution of heavy equipment and machine components,
• Warehousing and cold storage,
• Land & sea transportation,
• Large export-import projects in the industrial areas of Kendal, Cikarang, and Batam.

🧭Important Types of Insurance for Logistics Businesses

Here are some important insurance products that every Chinese logistics entrepreneur in Indonesia should have:

• Marine Cargo All Risks – Protects cargo from damage, loss, or accidents during land, sea, and air travel.
• Carrier’s Liability Insurance – Covers the logistics operator’s legal liability for damage to customer goods.
• Warehouse Insurance – Protects your warehouse and its contents from fire, flood, or theft.
• Motor Truck Cargo Insurance – Covers losses due to truck accidents on the road.
• Business Interruption Insurance – Covers loss of income due to operational disruptions.

L&G will help you tailor the best combination of protection at the most cost-effective rate — tailored to your individual company’s needs.

Important Message for Chinese Business Staff and Translators

Many foreign business owners entrust insurance arrangements to local staff or translators. However, this is a significant responsibility.

If you choose the wrong agent or buy an inappropriate policy, and a claim goes unpaid, the losses could run into the billions of rupiah — and you could be blamed.

Make sure you only use official insurance brokers registered with the OJK, such as L&G Insurance Broker, to ensure all risks are properly managed.

Conclusion: Protect Your Business Before It’s Too Late

In the world of logistics, time and trust are everything. But a single accident without adequate protection can destroy both.

Insurance isn’t just a document — it’s your business’s safety net.
And only authorized insurance brokers will truly stand on your side.

If you are a Chinese entrepreneur operating in Indonesia, make sure you are protected by a partner who understands the logistical risks, work culture, and local regulations.

Contact L&G Insurance Broker today.
Official, experienced and trusted broker for the logistics, energy and manufacturing industries.

Don’t let one truck roll over and destroy your business.
Choose the right protection — choose L&G Insurance Broker, an OJK-approved broker who is always on your side.

—

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 

—