What Is an Insurance Policy Period?

Terakhir Diubah : 09:15:25 - Thursday, 09 February 2023

An insurance policy period is the time frame during which an insurance policy is effective. Based on chapter IV, article 7 in INDONESIAN MOTOR VEHICLE INSURANCE STANDARD POLICY, it is a condition precedent to liability under this policy, that any premium payable shall have been paid off and actually received in full by the Insurer, in the event of:

insurance period of 30 (thirty) days or more, then settlement of premium payment shall be conducted within a period of 14 (fourteen) calendar days as of the date of inception of this Policy;

such insurance period is less than 30 (thirty) days, settlement of premium payment shall be conducted at the time of issuance of Policy.

In case the Insured fails to fulfill the liabilities as referred to in paragraph above, this Policy shall be automatically terminated without issuing cancellation endorsement starting from the expiry of the grace period and the Insurer shall be discharged from any liability there from.

For more info about Sahabat Insurance call 021-50508080.

Berita Lainnya

Sahabat Insurance Attends 2025 National Insurance Day Press Conference in Bali

Sahabat Insurance attended the press conference for the closing series of National Insurance Day 2025, held in Nusa Dua, Kuta Selatan, Badung, Bali. The event highlighted the ongoing challenge faced by the insurance industry: raising public awareness and understanding of the importance of insurance in everyday life.
National Insurance Day, celebrated annually on October 18, marks its 19th anniversary this year. In 2025, the event carried the theme "Insurance Literacy for the Nation : Understand – Own – Protect", reflecting the industry's commitment to promoting financial protection and inclusive insurance education across Indonesia.

Baca Selengkapnya

Factors Affecting Your Car Insurance Premium

Type of Coverage and Insurance Extension
The premium amount will be influenced by the type of coverage and also the insurance extension you choose. Generally, there are two types of coverage that you need to know, Comprehensive and Total Loss Only (TLO). With different types of insurance coverage available, the resulting premium is going to be affected. A comprehensive package with numerous features will naturally cost more than a lower-tier option. The same goes for optional extras, should you wish to add them on to your existing policy.
When buying insurance, it's crucial to carefully consider the coverage limits and ensure they align with your potential risks and needs.

Vehicle Age
The age of a vehicle is a key factor in determining car insurance premiums, both for comprehensive and Total Loss Only (TLO) policies. The Financial Services Authority (OJK) regulates which vehicles are eligible for comprehensive and TLO insurance in Indonesia.

Location
Motor Vehicle Insurance premiums are indeed affected by the area where the vehicle is primarily used. Insurance companies assess risks based on location, with areas experiencing higher accident rates, theft, or severe weather events often resulting in higher premiums.

Vehicle Usage
Car insurance premiums are indeed calculated based on risk, and vehicle usage is a significant factor in determining that risk level. Cars used for different purposes, like private, official, or commercial use, have varying levels of risk, and this is reflected in the premiums charged by insurance companies.

Always double check every policy guarantee and insurance premium offer according to your needs. Contact Sahabat Insurance marketing team for more info via WA 021-50508080.

Baca Selengkapnya

Ramadhan Charity With Sahabat Insurance

On April 14 2023, Sahabat Insurance visited and donated to the Orphan and Dhuafa Al Ikhwan Islamic Boarding School in Bekasi Regency, West Java.

Baca Selengkapnya

These are the fines and dangers of taking shelter under a JPO or Flyover

During the rainy season, motorcyclists usually take advantage of the JPO (Jembatan Penyeberangan Orang), underpasses, or flyovers for shelter. Unfortunately, this turned out to be a violation of traffic laws and regulations.Stopping on the shoulder of the road like that is not only a danger to yourself but also other motorists. The movement and speed of the vehicle will also be hampered.The prohibition on stopping carelessly is stated in Law No. 22 of 2009 concerning Road Traffic and Transportation (LLAJ). Precisely in article 106 paragraph 4 which reads that everyone who drives a motorized vehicle on the road must comply with the following provisions:
Command Signs or Prohibition Signs
Road markings
Traffic Signaling Tool
Traffic Movement
Stop and Park
Warning
As for the criminal provisions related to road marking violations, it is stated in Article 287 paragraph 3. It reads, every person who drives a motorized vehicle on a road that violates the rules of traffic movement, shall be punished with imprisonment for a maximum of 1 (one) month or a fine of a maximum of Rp. 250,000.

Baca Selengkapnya