Liga Asuransi – Hello risk takers, how are you? May your family and business be well always.
As always, in this blog, we always discuss risk management and insurance. This time we will discuss the risks of riots and distress associated with elections.
We will discuss the risks faced, the chaos that occurs, the impact caused by it, and insurance coverages that can overcome them.
If you are interested in this article, please share it with your colleagues; they also understand, like you.
As we already know, Indonesia, a diverse archipelago, has become an example of democratic success in Southeast Asia.
General elections (Pemilu) become the main stage for Indonesian citizens to determine their future and elect leaders to bring change directly.
In the coming months, precisely in 2024, Indonesia will again enter a new chapter in this democratic journey. However, behind the excitement and soaring expectations, we must face the possibility of unexpected social turmoil and unrest.
Indonesia’s 2024 elections will be a tense and intense political event. In this process, tensions, disagreements, and interparty rivalries create a tense atmosphere.
Unfortunately, motor vehicles often become victims of violence and undue damage in such situations.
Imagine that you are driving to work with excitement. Suddenly, a campaigning crowd split into two opposing camps, sparking widespread tensions.
Conflict ensues, and in the chaos, your vehicle is affected. Broken glass, scratches, or even more severe damage can happen instantly, leaving you with an unexpected financial burden.
In the face of a dynamic 2024 election, we must protect our own motor vehicles with the right insurance.
Vehicle insurance that covers the risk of riots and social unrest can be a strong shield in the face of possible losses incurred during the election process.
In this article, we will explore how important it is to have vehicle insurance that can protect us from social risks that may occur during the 2024 Elections, as well as how this protection can provide peace of mind when unexpected events occur.
Let’s prepare ourselves well for this challenging 2024 Indonesian election.
RIOTS AND STRIKES THAT OCCURRED IN INDONESIA
Here are some examples of riots or social unrest that have occurred in Indonesia:
- 1998 riots
In 1998, there were a series of riots and riots in various cities in Indonesia. These riots were triggered by political and economic tensions related to the fall of the New Order regime. Many buildings and vehicles were damaged because of this riot.
- Poso riots
The conflict between religious groups in Poso, Central Sulawesi, in 1998-2001 resulted in severe riots and bloodshed. Many buildings and vehicles were destroyed during this period.
- Ambon-Maluku riots
Conflicts between religious groups in Ambon and other Maluku regions in 1999-2002 resulted in riots involving arson, looting, and damage to infrastructure, including vehicles.
- Sambas riots
In 1999, there was a riot between Dayak and Madurese tribes in Sambas, West Kalimantan. These riots resulted in major damage, including arson and looting of homes and vehicles.
Papuan riots
Several riots and conflicts have occurred in Papua Province in recent years, with several violent incidents involving the destruction of vehicles and infrastructure.
Please note that the above list is only a part of the riots and riots in Indonesia. Many other incidents have also affected security and property damage, including vehicles, during social and political tension periods.
EXAMPLES OF DAMAGE AND LOSS DUE TO RIOTS AND RIOTS
The following are some examples of RSMD (Riot, Strike, Malicious Damage) risks that may occur in motor vehicles due to general elections (elections) in Indonesia:
- Damage from mass riots
During election periods, there are sometimes mass riots that can cause damage to motor vehicles. For example, vehicles may be subjected to stone, broken glass, or other objects that can damage the vehicle’s body or its components.
- Vehicle theft
In situations of uncontrolled unrest, the risk of vehicle theft may increase. Uncontrolled mobs or individuals taking advantage of the chaos can steal vehicles parked around the affected area.
- Fire damage
In a riot or crowd situation, the vehicle may catch fire due to deliberate action or a widespread fire. This could result in significant damage to the car.
- Acts of vandalism
During elections, vehicles can be subjected to vandalism in social unrest, such as paint graffiti, cable cutting, or damage to other vehicle components.
- Damage from explosion or destruction
In extreme situations, social unrest can lead to using explosives or other destructive acts that can cause severe damage to vehicles.
UNDERSTANDING THE COVERAGE OF THE INDONESIAN MOTOR VEHICLE INSURANCE STANDARD POLICY
Insurance companies in Indonesia generally offer the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) to protect motor vehicles. This policy has several standard guarantees that generally include the following:
- Third-Party Liability
This policy protects against the vehicle owner’s legal liability to third parties in the event of a traffic accident that causes physical injury or death, as well as damage to the property of third parties.
- Personal Accident Insurance for Vehicle Owners
If the vehicle’s owner has an accident that results in injury or death, this policy protects medical expenses and compensation stipulated in the policy.
- Vehicle Loss Guarantee
This policy also protects the owner’s vehicle from the risk of loss or damage caused by accident, collision, fire, theft, or malicious acts by third parties.
- Flood Insurance
Some PSAKBI policies also cover protection against vehicle damage due to flooding.
- Driver and Passenger Insurance Coverage
Some policies also provide coverage against injury or death of drivers and passengers in vehicles.
However, it is essential to note that the extent of coverage can vary between insurance companies. Therefore, always read carefully the terms and conditions of the policy offered by the insurance company to thoroughly understand what is covered and what is not covered under the policy.
In addition to the standard guarantees above, insurance companies can offer additional optional guarantees that you can consider according to your needs and preferences. For example, protection against damage from social unrest, political risk, or other legal protection.
Be sure to consult an insurance broker as a consultant for more detailed information about the guarantees offered in their Standard Indonesian Motor Vehicle Insurance Policy.
IS THE RISK OF RIOTS AND STRIKES GUARANTEED BY PSAKBI?
Yes, the PSAKBI policy covers the risk of riots and riots, but it should be noted that risks due to riots, strikes, and riots do not apply automatically.
Such risks can be guaranteed by adding additional collateral called “Risk of Strike, Riot, and Civil Commotion” (SRCC).
This insurance protects motor vehicles from damage or loss caused by social turmoil, including riots, riots, and strikes.
So, you must request the insurance company that you want to include SRCC coverage in your policy.
HOW CAN THE RISK OF RIOTS AND STRIKES DUE TO ELECTIONS BE COVERED BY PSAKBI?
To ensure that the risk of riots and strikes due to elections is covered under the PSAKBI insurance policy, you need to take the following steps:
- Review Terms and Conditions
Read carefully the PSAKBI insurance policy terms and conditions offered by your chosen insurance company. Look for sections related to “Special Risk” or “Risk of Strike, Riot, and Civil Commotion” (SRCC). Note whether the guarantee against riots and strikes is included by default or whether it needs to be added as additional collateral with additional premium payments.
- Discuss with Your Insurance Broker
Convey your desire to your insurance brokerage company to include coverage against the risk of riots and strikes due to elections in your PSAKBI insurance policy. Ask questions and clarify whether the warranty is available, the coverage is, and whether you need to know any specific requirements or limitations.
- Check Additional Policies
In addition to the SRCC guarantee in the PSAKBI insurance policy, insurance companies may offer additional policies that specifically protect vehicles from political risks or social unrest associated with elections. Ask for information about these additional policies and evaluate whether they fit your needs.
- Get a Written Explanation
Ensure that all agreements, guarantees, and policy changes discussed with the insurance company are recorded in writing. This will provide clarity and certainty about what is covered by the PSAKBI insurance policy you choose.
- Insurance Broker
You need to use the services of an experienced and trusted insurance broker to help you choose an insurance policy that suits your needs and ensure that the risk of riots and strikes is covered.
WHY SHOULD VEHICLE OWNERS USE THE SERVICES OF AN INSURANCE BROKER?
There are several reasons why vehicle owners should use the services of an insurance broker:
- Access to a Wide Range of Insurance Options
Insurance brokers have access to various insurance companies and different insurance products. They can help vehicle owners to compare other vehicle insurance policies offered by different companies, thus allowing vehicle owners to choose a policy that suits their needs and budget.
- In-depth Knowledge and Expertise
Insurance brokers are experienced professionals in the insurance industry. They have in-depth knowledge of insurance products, terms, and conditions related to vehicle insurance. By using the services of a broker, vehicle owners can leverage their knowledge and expertise to thoroughly understand policy coverage and get valuable advice in choosing the right policy.
- Representation and Negotiation
As representatives of vehicle owners, insurance brokers will strive to protect the interests of their clients. They can help negotiate with the insurance company to get better terms and prices. They can also provide advice on how to optimize vehicle insurance coverage and get coverage that suits the needs of vehicle owners.
- Claims Handling
In the event of an insurance claim, an insurance broker can assist the vehicle owner in the claim-handling process. They can guide the requirements that need to be met and assist in filing claims efficiently. With their experience and knowledge, insurance brokers can help expedite the claims process and ensure vehicle owners get the compensation they deserve.
- After Sales Service
Insurance brokers can also provide after-sales service to vehicle owners. They can assist in policy renewals, coverage changes, or vehicle insurance-related questions and complaints. Vehicle owners can rely on brokers to provide information and support regarding their vehicle insurance.
By employing the services of an insurance broker, vehicle owners can benefit from their knowledge and experience, gain access to a wide range of insurance options, and get assistance in negotiating and handling claims. This helps ensure vehicle owners get an insurance policy that suits their needs at an optimal price and coverage.
One of the leading insurance brokers in Indonesia that have successfully resolved insurance claims quickly and well is L&G Insurance Broker.
For all your insurance, contact L&G now!
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