STANDARD POLICY OF MOTOR VEHICLE INSURANCE FOR
The Insurer who is signing this Policy, based on the written insurance
request of the Insured through an Application for Insurance for Motor Vehicle
(SPPKB) and/or another document, forming an integral part of this Policy and
based on the payment of the premium of the Insured, agrees to give a
compensation to the Insured based on stipulations, requirements, exceptions
stated in and/or put and/or attached to this Policy.
SECTION
1
RISKS COVERED
ARTICLE
1
Loss or Damage to the Motor
Vehicle
The Insurer indemnifies the
Insured against :
(1)
Loss or Damage to the motor vehicle insured caused
by :
(1.1)
collision, impact, overturning or running off the
road, also included the consequence of material error, construction defect,
inherent defect or other causes of the motor vehicle concerned;
(1.2)
malicious damage by any other person;
(1.3)
theft, including theft preceding, or concurrent with
or subsequent to bodily violence or the threat of bodily violence made to a
person and/or the insured vehicle with the intention of facilitating theft of
the whole motor vehicle or equipment of the motor vehicle insured in this
policy;
(1.4)
fires, including fire on objects or other motor
vehicle close by or a storage place for insured motor vehicles, or as a
consequence of water and/or other means used to confine or extinguish the fire;
likewise the consequence of partial or total destruction of the insured vehicle
by order of the lawful authorities with the object of confining the fire;
(1.5)
stroke of lightning.
(2)
Loss or damage by events defined in SECTION I,
Article 1, paragraph 1 item (1.1), (1.2), (1.3), (1.4) and (1.5) and other
causes during transit by ferries or other official crossing means under the
control of the Directorate General of Land Communication.
(3)
Damage to tires if such damage also causes damage to
the motor vehicle as a consequence of an accident.
(4)
Proper expenses incurred by the Insured for
safeguarding or transport to a workshop or other place to prevent or reduce
loss or damage insured in this policy, not exceeding half percent (0.5%) of the
sum insured, without calculating with the own risk.
ARTICLE 2
Third Party
Liability
The Insurer indemnifies the Insured for :
(1)
Legal Liability of the Insured to a loss suffered by
a third party directly caused by the insured Motor Vehicle, either settled
through an amicable settlement or through the court, both with prior consent of
the Insurer, maximum in the sum referred to in the summary of the insurance
including;
(1.1) damage to property
(1.2) bodily injury or
death
(2)
Legal fee or aid for cost of experts related to the
claim liability of the Insured with prior written consent of the Insurer.
SECTION II
RISKS NOT COVERED
ARTICLE 3
Insurer does not
indemnify :
(1)
Loss of profit, loss of earnings, depreciation in
value or any other financial loss suffered by the Insured in consequence of the
insured motor vehicle being out of use due to an accident or any other cause.
(2)
Damage to or loss of additional
equipment/accessories not specified in the summary of this Policy in
consequence of an accident or any other cause.
(3)
Damage or loss of insured motor vehicle partially or
totally in consequence of embezzlement/absconding.
(4)
Loss of damage to insured motor vehicles as a
consequence of a criminal act committed by the Insured, husband, or wife or
child of the Insured, someone ordered by the Insured, in the employment of the
Insured, a person with the knowledge or consent of the Insured/a person in the
employment of the Insured or a person who is staying with the Insured.
(5)
Loss or damage to the insured motor vehicle caused
by :
(5.1) The motor vehicle
is being used to tow or to push another motor vehicle, to participate in a
skill competition or a race, tuition in driving, to tow a trailer, for a
carnival or a procession, or to conduct a crime act, or for a certain purpose
other than stipulated in this policy.
(5.2) Overloading or
being driven by force.
(5.3) The motor vehicle
is driven with the knowledge of the Insured in a damaged condition, in a
technically not justifiable, insecured condition or being under repair.
(5.4) The motor vehicle
is driven by someone who at the time of accident does not have a valid driving
license or by a person who is under influence of alcohol or any other drugs.
(5.5) Entering or
driving over roads closed, prohibited or not meant for the Insured motor
vehicle with this Policy.
(5.6) Goods being loaded
on to, piled up, unloaded from or transported by the Motor Vehicle.
(5.7) Nuclear reaction
or radiation, radio active pollution, nuclear reaction of the atom,
irrespective as to how the reaction has been effected notwithstanding anything,
whether, within or outside the insured motor vehicle.
(6)
Loss or damage to the insured motor vehicle either
directly or indirectly caused by :
(6.1)
Earth quakes, eruption of a working volcano, a
storm, hurricane, flood, stagnant water, or geologic phenomenon or other
meteorology.
(6.2)
War, attack, foreign enemy’s action, hostility or
activities resembling a war atmosphere (with or without declaration of war),
civil war, revolt, civil commotion (riots) considered being a part of or
leading to a general revolt, a military revolt, riots, terrorism, using
violence, revolution, using military
force or taking over power or the act of a person acting in the name of or
linked to an organization with activities aiming to overthrow the legal de jure
or de facto government by force.
(6.3)
Riots, strikes or any other public order disturbance
and the like.
(7)
Loss or damage to the parts or material of the
insured motor vehicle due to being worn out, nature of own shortcoming to that
part or to the engine as a consequence of injudicious use.
(8)
The loss suffered by a third party directly or
indirectly caused by the Insured Motor Vehicle is in the form of :
(8.1) damage to property
owned by or under control of the Insured is transported, loaded on or unloaded
from the Insured Motor Vehicle;
(8.2) damage to roads,
bridges, viaducts, buildings found underneath, above, or beside the road as a
result of vibrations, the weight of the Motor Vehicle or its load.
(9)
Bodily injury/death directly or indirectly caused by
a Motor Vehicle insured against :
(9.1) a passenger in the
Insured Motor Vehicle;
(9.2) the Insured,
husband or wife and child of the Insured in the event the Insured is an
individual;
(9.3) shareholder or the
management if the Insured is a limited partnership (CV) or a Firm;
(9.4) the management, in
the event the Insured is a legal body in the form of a limited liability
company, institution or a joint venture or another form;
(9.5) a person in the
employment of the Insured by receiving repayment of services;
(9.6) a person staying
with the Insured;
(9.7) animal owned by or
under control of the Insured, transported, loaded on to, unloaded from the
Insured Motor Vehicle.
SECTION III
POLICY CONDITIONS
ARTICLE 4
Territory
This Insurance is only in force within the limits of the
ARTICLE 5
Payment of Premium
Unless otherwise agreed upon, the payment of the premium shall be
settled first.
If the premium is not paid within a period of 10(ten) working days as
of the starting date of the insurance or the date of the insurance extension,
the validity of this insurance is postponed by the Insurer without any prior
notification and if at any time a loss/damage occurs on the insured motor
vehicle, the Insured is not entitled to get a compensation. This postponement shall be ended 24 (twenty
four) hours after the premium has been received by the Insurer or this
insurance will become null and void for the sake of law in the event the
premium is not paid for after 90 (ninety) calendar days have elapsed starting
as of the date the insurance is in force.
Upon this annulment the Insurer is entitled to the premium during the
period which has already run to the sum of 20% (twenty percent) of the annual
premium.
ARTICLE 6
Accident
Notification
(1) The Insured is
obliged to give notice of an accident or theft on the Insured Motor Vehicle to
the Insurer at the latest 3 (three) working days after the occurrence of the
accident or the theft.
(2) The notification
referred to in paragraph 1 mentioned above is done in writing or verbally
followed by a written report to the Insurer.
(3) In the event of a
theft or damage to the Insured Motor Vehicle committed by a third party which
can be made a basis for claiming a compensation of the loss or due to the claim
by a third party to be borne by the Insurer, the Insured is obliged to report this
to and obtain a statement from at least a local police station.
(4) Especially for a
total loss as a consequence of a theft, the Insured is obliged to report this
to and to obtain a statement from the local Regional Police.
ARTICTLE 7
Third Party Claim
In the event a compensation is claimed to the Insured by third parties
in the framework of a loss or damage caused by the insured Motor Vehicle, then;
(1) The Insured is
obliged to give notice to the Insurer of the claim at the latest 3 (three)
working days after receipt of the claim;
(2) The Insured shall
immediately deliver the existing documents in connection with the claim filled
by the third party concerned;
(3) The Insured is not
allowed to make any promises, statements or conduct any actions that give an
impression that he acknowledges the claim liability;
(4) The Insured
authorizes the Insurer to handle the claim for compensation to third parties
and if required. The Insured is obliged
to give power of attorney to the Insurer.
ARTICLE 8
Criminal Claim
Against the Insured
(1) If a criminal
claim is brought against the Insured in the context of a loss suffered by third
parties, the Insured is obliged to give the Insurer notice of the matter at the
latest within 3 (three) working days since the claim has been received by the
Insured.
(2) The Insurer is
entitled to appoint a legal advisor and in such a case the Insured is obliged
to use the advisor in his case. The fee
for such an aid is for the Insurer account.
ARTICLE 9
Indemnification
The Insurer shall indemnify the Insured for the damage to or the loss
of the insured Motor Vehicle based on the actual price just before the damage
or the loss occurs or upon the claim filed by third parties, maximum in the
sum, after reduction by the own risk amount (own retention) included in the
insurance summary and after imposing insurance calculation below the price
according to article 12 hereunder, with the following stipulations:
(1) The Insured is
obliged to give the opportunity to the Insurer to investigate the damage before
any repairs or replacement have been done on the motor vehicle concerned.
(2) The Insured is
entitled to determine its choice for repair in the workshop appointed or
approved, to replace by a similar Motor Vehicle or to compensate it with money.
(3) The Insured is
entitled to file his dissatisfaction in writing about the result of the repair
on the Motor Vehicle concerned therewith by the workshop within a period of 14
(fourteen) calendar days after completion of the repair and delivery to the
Insured in case the workshop has been appointed by the Insurer.
On payment of compensation
the Insurer will calculate with the premium owed for the insurance period which
still runs on the Motor Vehicle.
ARTICLE 10
Total Loss
Total loss is damage or loss of which the cost for repair is estimated
equal to or more than 75% (seventy five percent) of the actual value of the
motor vehicle concerned if repaired or lost because of theft and not found
within a period of 60(sixty) days after the theft of the Insured Motor Vehicle.
ARTICLE 11
Compensation of
Double Insurance
(1) Deviating from
article 277 paragraph 1 of the Commercial Code in the event of loss to insured
motor vehicle under this policy, wherein the Motor Vehicle concerned has also
been insured by one or more other insurers and the total sum of all the
insurance exceeds the price of the Motor Vehicle concerned, the sum insured
under this policy is considered decreased according to the proportion between
the sum of all insurance and the price insured.
However, the premium is not decreased or returned.
(2) The above
stipulation remains in effect although various insurance has been taken with
several policies and on different dates, earlier
than the date of this policy
and do not contain stipulations referred to in paragraph 1 above.
In the event of a loss or
damage upon request of the Insurer, the Insured is obliged to notify in writing
all other insurance which are still in effect on the same Motor Vehicle at the
moment when loss or damage occurs.
ARTICLE 12
Under-Insurance
If at the moment of loss or damage by a danger to the insured motor
vehicle guaranteed under this motor vehicle insurance, the actual price of the
motor vehicle is higher than the insured price, the Insurer will give a
compensation according to the calculation of the insured part against the
uninsured part.
ARTICLE 13
Act of Prevention
The Insured is obliged to make all proper efforts to guard and maintain
the motor vehicle. In the event of an
accident or damage to the motor vehicle, the vehicle concerned may not be left
without reasonable security to avoid further damage/loss.
ARTICLE 14
Subrogation
(1) In accordance with
article 284 of the Commercial Code, after payment of the compensation for the
motor vehicle and/or the interest insured under this Policy, the Insurer
compensates the Insured with all the rights acquired against third parties in
the context of this loss. The subrogation right referred to this in this
paragraph is automatically in effect without necessity of special letters of
power of attorney from the Insured.
(2) The Insured is
liable for every act which could damage the Insurer right against the third
parties concerned.
(3) Negligence of the
Insured is carrying out his obligation referred to in paragraph 2 above may
lessen the Insured right to acquire compensation from the Insurer.
ARTICLE 15
Incorrect
Information by Insured
The Insured with the aim to acquire profit from this Policy insurance,
who is intentionally;
(1) Increases the sum
of loss suffered
(2) Hides away the
items saved or remnant of items and declares them as annihilated items;
(3) Is using false
documents or evidence, lies or frauds;
(4) Conducts or has
actions conducted which cause loss or damage insured under this Policy;
(5) Makes a mistake or
is negligent which very much exceeds the limit causing loss/or damage which as
a matter of fact should have been insured under this Policy;
Is not entitled to receive any compensation.
ARTICLE 16
Lapse of Right On
Indemnification
(1) The right of the
Insured to compensation based on this Policy automatically lapses if the
Insured :
(1.1) does not fulfill
his obligation based on this Policy;
(1.2) does not file a
claim for compensation within a period of 12 (twelve) months as of the
occurrence of the loss or damage;
(1.3) does not file an
objection or strive for a solution through legal means within a period of 6
(six) months after the Insurer notified in writing that the Insured was not
entitled to acquire a compensation.
(2) The right of the
Insured on a larger compensation than has been approved by the Insurer will
cease if, within a period of 3 (three) months after notification in writing by
the Insurer, the Insured does not file an objection or strive for a solution
through legal means.
ARTICLE 17
Actual Value
(1) The actual value
of the insured motor vehicle is the proceeds of sale acquired by the Insured
with an uncompelled sale of the same motor vehicle a moment before occurrence
of loss or damage.
(2) The value of motor
vehicle outfit or equipment/accessories is the purchase price on the free
market.
(3) The basis of the
value for replacement of the outfit or equipment which is no longer traded on
the free market, is the price registered at the latest from their factory for
ARTICLE 18
Examination
The Insurer has the right to any time conduct an examination on the
motor vehicle insured under this Policy.
ARTICLE 19
Termination of the
Insurance
(1) Cancellation of
the Policy
The Insurer and the Insured
are respectively entitled to cancel this insurance at any time without
obligation to notify the reasons. Such
notification on the termination is given in writing sent by registered mail by
the party who intends to terminate the insurance to the other party’s latest
address known.
The insurer is free from any
obligation based on this policy, 3 (three) working days after the mailing date
of the above notification letter, at 12:00 o’clock local time.
In the event it is the
Insured who does the cancellation, the Insured is obliged to pay for the
premium for the passed period, calculated in accordance with the scale of short
term insurance premium; in case cancellation is by the Insurer, the Insurer is
obliged to return the premium in a prorate way for the insurance period that
has not run yet.
(2) Transfer of Right
of Ownership to Someone else
In the event a motor vehicle
and/or an interest insured is transferred to someone else, either based on an
agreement or due to death of the Insured, then deviating from article 263 of
the Commercial Code, this Policy is automatically null and void 10 (ten)
calendar days after the transfer of ownership to someone else, except if the
Insurer agrees to continue this.
(3) Occurrence of
Total Loss
The Insurance shall also
automatically cease after giving a compensation of the loss based on total
loss/damage or which can be equalized with it without returning the premium
although the insurance is for a long term.
(4) Cease Insurance
Period
The Insurance will also
automatically cease after the ceased insurance period according to this policy.
ARTICLE 20
Arbitration
(1) In the event a
dispute or a disagreement arises between the Insurer and the Insured as a
consequence of the implementation or interpretation of this insurance
agreement, and the dispute and disagreement cannot be settled amicably within a
period of 30 (thirty) days as of the occurrence of loss which became the basis
of the dispute and disagreement, the party concerned has the right to submit
the dispute or the disagreement to the Association of Insurance Companies in
Indonesia cq Chairman of the Sector of Loss Insurance which will form an
ad-hoc arbitration body within a period of maximum 30 (thirty) working
days after the application letter for arbitration has been received by the
Secretariat General of the Association of Insurance Companies in Indonesia.
(2) The ad-hoc Arbitration
Body has a membership of 3 (three) arbitrators, one of whom is a graduate in
law, appointed as chairman also holding the position of a member.
(3) The two other
member (arbitrators) are elected and appointed among people experienced in the
branch of insurance concerned and priority is given to someone who is no longer
active in and as an insurance/re-insurance company, insurance/re-insurance
broker or is an insurance/re-insurance agent.
(4) The arbitrators
determine the arbitration rules and the arbitration fee as well as the parties
who are bearing the arbitration fee.
(5) The arbitration
body has the obligation to resolve the dispute or disagreement within a period
of 90 (ninety) calendar days as of the date of its formation.
(6) Resolution by the
arbitration body constitutes a final and binding decision to both parties.
ARTICLE 21
Closing
(1) If difference is
found in the document between the content of this Policy and the one already
circulated through Decision Letter of the Management of the Association of
Insurance Companies in Indonesia to all their members in the Department of
Losses, original of which is filed in the Office of the Secretariat General of
the Association, then the latter mentioned, shall apply.
(2) For matter still
insufficiently or not regulated in this Policy, stipulations in the Commercial
Code and other legislation regulation shall be in force.
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