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TLO insurance for motorcycles provides important protection against the risk of total loss due to theft or severe damage. This article discusses the understanding of TLO, comparison with All Risk, benefits for daily motorists, premium simulations and tips on choosing the best protection in Indonesia.
In Indonesia, motorbikes are not just a means of transportation - for millions of people, motorbikes are part of lifestyle as well as sources of income, especially for field workers such as online motorcycle taxis and couriers. However, the high number of traffic accidents and the rise of vehicle theft makes the motorbike a very vulnerable asset to losses.
According to the National Police Korlantas Report, throughout 2023 there were more than 148,000 cases of traffic accidents in Indonesia. Of these, motorbikes are the most involved vehicles, with a very significant percentage.
Data from Bisnis.com states that 77% of accidents involved motorbikes, while Mediahub Polri recorded 76.42%. In line with that, Brigadier General Yusri Yunus from the National Police Korlantas also stated that around 72% of traffic accidents in Indonesia were related to two -wheeled vehicles.
This statistic shows how high the risks faced by motorcyclists on the highway. In the midst of this condition, it is important for two -wheeled vehicle owners to have strong financial protection in the event of a disaster.
One of the most relevant and affordable forms of protection is TLO (total loss only) insurance, which is insurance that provides compensation for total loss due to theft or severe damage. This type of insurance is a wise solution for motorists who want to remain financially safe without paying high premiums.
TLO insurance or total loss only is a type of vehicle insurance that provides protection if the motor is total damage (≥75% of the vehicle value) or is lost due to theft. That is, TLO does not bear small damage or mild blisters, but focuses on a large risk that can cause you to lose complete assets.
To make it easier to understand, the following is a comparison table between the two most common types of vehicle insurance in Indonesia:
Aspect |
TLO Insurance (Total Loss Only) |
All Risk Insurance (Comprehensive) |
|---|---|---|
Type of coverage |
Total loss or damage ≥75% |
All types of damage, |
Premium cost |
Cheaper, |
More expensive, |
Best suited for |
Daily motorcycles, |
New motorcycles, |
Theft coverage |
✅ Included |
✅ Included |
Scratch/dent coverage |
❌ Not covered |
✅ Covered |
Required by leasing? |
✅ Yes, for financed vehicles |
✅ Yes |
Now after you know the basic scope of TLO insurance and how it is different from all risk, let us discuss further the benefits and who is the most benefited from choosing this protection.
After understanding the basic scope and comparison between TLO and All Risk, it is important to see more in what are the concrete benefits of TLO insurance for motorcyclists in Indonesia.
TLO insurance provides a guarantee of compensation in the event of a total loss, both due to theft and severe damage due to accidents. Without insurance, this loss can greatly burden personal finances, especially for those who rely on motorcycles as the main tool for earning a living.
With an average premium of around 1% -1.5% of the vehicle value, TLO insurance is a very economical protection option. This is suitable for motorcycle owners who want to protect their assets without paying high premiums as in the All Risk policy.
TLO is very suitable for motorbikes that are used every day and are more than a few years old. Protection of minor damage is usually not really needed for this type of motor, so TLO provides premium efficiency as well as maximum protection of large risk.
Most finance institutions (leasing) require TLO insurance for motorbikes purchased on credit. This aims to protect assets to installments in full, both for consumers and finance companies.
With such significant benefits, the next question is:
Who is the most appropriate to use TLO insurance?
Which user group benefits the most of this type of protection?
Let's look at the answer below:
TLO is not always suitable for everyone. However, this type of insurance is ideal for the following user groups:
User Category |
Reason Why TLO Is Suitable |
|---|---|
Daily motorcycle owners |
Used daily for work, school, or commuting—high exposure to risks. |
Owners of older motorcycles |
Depreciated vehicle value fits well with TLO’s lower premium. |
Field workers (e.g., delivery, ride-hailing) |
The motorcycle is a vital asset that must be protected from total loss. |
Motorists in high-theft areas |
High theft rates in urban areas make total loss protection essential. |
Financed motorcycle buyers |
TLO is often required by leasing companies to protect the asset during the loan period. |
In other words, TLO insurance is ideal for anyone who prioritizes large protection with small premiums, especially if mild damage is not a major concern.
If you are included in one of the categories above, now is the time to understand how affordable TLO insurance premiums actually are.
The following is a premium simulation that can give a clearer picture.
To understand further, here is a simple simulation of TLO premiums based on vehicle value:
Vehicle Value |
Estimated Annual Premium (±1.25%) |
|---|---|
IDR 10,000,000 |
IDR 125,000 |
IDR 15,000,000 |
IDR 187,500 |
IDR 20,000,000 |
IDR 250,000 |
IDR 25,000,000 |
IDR 312,500 |
Note: The magnitude of the premium can vary depending on the area, motor age, and insurance company policy.
This simulation shows that even with maximum protection against the risk of total loss, insurance costs remain very affordable. By paying less than Rp1,000 per day, you can secure motorcycle assets from the potential loss of millions of rupiah.
After knowing the potential for the cost of premiums and protection you get, the next step is to choose the right insurance provider. Here are some important tips before you make a decision.
After knowing the benefits and simulation of premiums, the next step is to choose the right TLO insurance product. Here are some tips that you can consider:
Make sure you choose a trusted insurance provider such as Oona insurance that has been licensed and supervised by OJK. Good reputation is important to ensure ease of claims and after -sales services.
Read and understand all the provisions in the policy, including the requirements for claims, exceptions, and the limit of the insurance value. Don't hesitate to ask the agent or customer service.
Choose a provider that offers a digital -based claim process and is not complicated. The easier the claim is made, the higher the value of the protection you feel.
Some insurance providers offer additional benefits such as emergency assistance on the road, online consultation, or discounted workshop service. This can be an added value compared to the price of premiums.
With a more complete understanding of the benefits, calculations, and tips on choosing a product, you can make more appropriate decisions in choosing motor insurance.
With so many insurance providers on the market, maybe you ask: "Which is the most trusted?" To answer this question, let's look deeper at the advantages of Oona as a selected motorcycle insurance provider.
Oona Insurance offers advantages that make it a trusted and practical motor protection partner:
Advantage |
Description |
|---|---|
100% Online & Easy Process |
Purchase your policy online anytime, anywhere — no need to visit an office or agent. |
Affordable Premiums |
Premiums start from a low amount with maximum protection benefits. |
Fast & Transparent Claims |
Hassle-free claims process through an efficient digital platform. |
Responsive Customer Service |
Quick and informative support for all your insurance-related inquiries. |
With all these advantages, Oona insurance is present not only as a product provider, but as a long -term, transparent, and relevant long -term protection solution for the needs of the Indonesian people.
Let's check the current motorcycle insurance price and secure your motorbike from a big risk starting today. Now, let's summarize everything that has been discussed in this article.
TLO insurance for motorcycles is not only a matter of compensation for physical losses, but also a matter of maintaining financial stability in the midst of unpredictable risks. In Indonesia, where the accident rate and vehicle theft are very high, TLO is a form of relevant, affordable, and practical protection.
By understanding the benefits, knowing who TLO is best suited for, and how to choose the right policy, you now have the knowledge to make a smarter decision. And if you are looking for motorcycle insurance that is not only easily accessible, but also trusted and supervised by OJK, then Oona Insurance is the answer.
