TLO Insurance for Motorcycles: Why Is It the Most Realistic Option?

Motorcycle Vanished Without a Trace? This is the Harsh Reality for Motorcycle Owners in Indonesia

Imagine waking up in the morning, ready to go to work, only to find the motorcycle you usually keep neatly parked on the porch is gone without a trace. That's not just bad luck; it's the reality for many motorcycle owners in Indonesia.
 

According to Indonesian Police data, in 2022 motorcycle theft has increased significantly. For example, in Surabaya, hundreds of cases occurred in just a few months. The national motorcycle theft rate has reached around 38,000–42,000 cases per year. 
 

But beyond the risk of theft, many drivers also face:
 

• A serious accident that completely destroyed the motorbike
  
  

• Damage due to flood, collision, or fire
   

However, the majority of motorbikes remain uninsured even OJK notes that insurance penetration for two-wheeled vehicles is still only around 1.4% - 2.7% of the population.
 

This view is reinforced by reports Bisnis.com which states that general insurance penetration (including motor vehicles) has stagnated below 3% for more than a decade, even though the Indonesian economy continues to grow.
 

From around 275 million inhabitants, just under 8 million people have motor vehicle insurance. Although two-wheeled vehicles dominate, with around 130–137 million units, insurance penetration remains very low, below 3% compared to the total population and vehicle age.
 

With such significant risks, it's natural for many motorcycle owners to consider additional protection. But the question is, what kind of protection is truly effective and meets the needs of everyday motorcycle owners? One answer is a type of insurance called TLO. Let's first learn what TLO motorcycle insurance is and how it works.

What is TLO Motorcycle Insurance?

TLO or Total Loss Only is a type of vehicle insurance protection that will only pay claims if a total loss occurs, namely:
 

• Complete loss of the motorbike (e.g. stolen and not found)
  
  

• Serious damage with a repair value of ≥ 75% of the market price of the motorbike at the time of the incident
   

This means that if your motorcycle only suffers a scratch, a broken mirror, or a broken engine that can be repaired at a low cost, TLO will not cover the claim. To clarify, here are some real-life scenarios where claims can and cannot be made through TLO insurance.

Examples of Situations Covered by TLO

Disclaimer: This table is for illustrative purposes only and does not reflect the entire policy. Always read the official policy documents for the terms, benefit limits, and exclusions applicable to TLO motorcycle insurance products.
 

To understand when a claim can be filed, you need to know the true definition of “total loss” in the context of insurance.

Why is it called "Total Loss"?

The term "Total Loss" refers to a condition where:
 

1. The motor cannot be safely reused, or
   
   

2. The cost of repairing a motorcycle is almost equal to or higher than the value of the motorcycle itself.
    

For example: If your motorbike is worth IDR 15 million and is damaged in an accident with repair costs of IDR 12 million (80%), then you are entitled to submit a TLO claim.
 

But it is important to note that TLO is not a solution for all risks. Some conditions remain out of coverage.

Important: TLO Does Not Cover All Risks

While TLO offers important protection against major losses, it doesn't cover minor or moderate risks. Here are some conditions that TLO doesn't cover:
 

• Minor damage: body scratches, rusty exhaust
  
  

• Missing non-standard accessories: motorcycle box, rearview mirror
  
  

• Damage due to normal wear and tear
  
  

• Damage due to certain natural disasters (unless explicitly covered by the policy)
  
  

• Travel outside the geographic area of coverage (e.g. use outside the policy area of application)
   

With all its limitations, is TLO still relevant to you? Let's see who benefits most from this type of coverage.

Who is suitable for TLO insurance?

TLO motorcycle insurance is suitable for:
 

• Daily motorbike owners who often park in public areas
  
  

• Owners of motorbikes aged > 3 years where the risk of loss is greater than the cost of minor servicing
  
  

• Those of you who want maximum protection with low premium costs
   

If you are more often worried about losing your motorbike or fatal damage, TLO is the most efficient and sensible protection solution.

Why is Comprehensive Insurance Rarely Available for Motorcycles?

Many vehicle owners wonder, “Why can't my motorbike be insured comprehensively like a car?” The answer has to do with a combination of economic factors, risk, and operational efficiency in the insurance industry.

Comprehensive vs. TLO Differences

Disclaimer: Comprehensive motorcycle insurance is currently very rare in Indonesia and is generally not offered by providers like Oona. If you're a daily motorcycle user with a high risk of loss, TLO insurance is the most realistic protection option.
 

Some of us might ask, why not just get insurance that covers everything? Let's discuss why comprehensive insurance is almost unavailable for motorcycles.

Why is Comprehensive Less Relevant for Motorcycles?

1. Motorcycle Value Decreases Quickly
   Motorcycles depreciate more rapidly than cars. Within 1–2 years, a motorcycle's value can drop by 30–40%, making comprehensive coverage less than the vehicle's market value.
   
   

2. Minor Claim Frequency Too High
   Scratches, falls, broken mirrors, or dents are common occurrences for motorcyclists. All these minor claims can lead to expensive premiums. As a result, many companies choose not to offer comprehensive motorcycle insurance.
   
   

3. Cheaper Repair Costs
   The average cost of servicing or replacing motorcycle components is much cheaper than for cars. As a result, minor damage is often more convenient for the owner to cover out-of-pocket.
   
   

4. High Risk on the Road but Small Value
   The data shows that motorbikes are more often involved in accidents as compared to cars, but the loss value per incident is relatively small. The comprehensive model becomes actuarially inefficient (calculating premium risk versus benefit).
    

While rarely available, there are certain conditions where comprehensive insurance can make sense.

When Is Comprehensive Insurance Relevant?

• For premium motorbikes (above IDR 100 million)
  
  

• For rare collections or hobby motorbikes
  
  

• If provided by a special dealer or leasing package
   

However, currently, such products are rarely available in Indonesia, and even when they are available, the premiums and requirements are very high. For the majority of daily motorcycle owners, TLO remains the best option. Therefore, for most daily motorcycle owners, TLO remains the most sensible and efficient option. Here's when you should consider it.

When is TLO Motorcycle Insurance Most Profitable?

Total Loss Only (TLO) insurance isn't just a cheap and cheerful solution; it's highly efficient and relevant when tailored to your motorcycle's usage profile and risk profile. Not everyone needs comprehensive protection, but almost everyone does need protection from major losses.
 

Here are some scenarios where TLO is highly recommended:

1. Motorbikes are used daily in urban areas

Motorcycles used daily for work, school drop-offs, or courier services are more vulnerable to:
 

• Parked in a public or outdoor area
  
  

• Often cross busy and high-risk roads
  
  

• Wear out more quickly and have the potential for serious damage in an accident.
   

The solution: TLO provides protection against the worst possible outcomes, such as major collisions or loss of the motorbike.

2. Motorcycle Age Over 3 Years

The value of a motorcycle typically decreases quite drastically after 3 years. Under these conditions:
 

• Comprehensive premiums are not commensurate with the benefits
  
  

• But the risk of major damage or loss remains.
   

TLO is the most logical and economical form of protection.

3. Living in an area with a high number of motorcycle thefts

Data shows that large urban areas like Jakarta, Surabaya, Medan, and Makassar report thousands of stolen motorcycles each year. In some cities, thefts even occur in public places during the day.
 

If you live or work in a vulnerable area, TLO provides extra peace of mind.

4. The vehicle is not equipped with an additional security system.

Without a GPS tracker, dual alarms, or a dedicated garage, the risk of loss increases. TLO provides a financial safety net in case theft does occur.

5. You Need Protection but Have a Limited Budget

TLO premiums are generally much more affordable than comprehensive insurance. This makes them suitable for those seeking protection:
 

• Without disturbing the monthly cash flow
  
  

• But you can still claim in a major emergency.
   

Simple simulation example:

If your motorcycle is worth IDR 15 million and the TLO premium is only around IDR 300,000–400,000/year, you only pay around IDR 25,000–35,000 per month for total loss protection.
 

Disclaimer: Simulation for illustration purposes only, not an official offer.
 

Have you decided TLO is right for you? Now it's time to understand the claims process if needed.

How to Claim TLO Oona Motor Insurance

Although TLO insurance focuses on major risks, Oona still makes the claims process easy and fast. Claims can be submitted digitally and assisted by a 24/7 team if you experience loss or total damage while on the road.

Short Flow of TLO Claims:

Disclaimer: The claims process above is general and may vary depending on circumstances, policy type, and the results of internal investigations. Always refer to Oona's official policy terms and conditions and consult the customer service team for accurate claims guidance.
 

With its simple process and targeted protection, TLO insurance can be a lifesaver in unexpected situations. But is this enough to give you peace of mind?

Conclusion

Motorcycles are an essential part of the daily lives of millions of Indonesians—not just a means of transportation, but also a source of income, convenience, and even freedom. Unfortunately, the risk of loss and significant damage is unavoidable, especially in large cities with dense traffic and high theft rates.
 

Comprehensive insurance may sound ideal, but in reality, it's rarely available and too expensive for everyday motorcycles. This is where TLO motor insurance (Total Loss Only) comes into play. With a much lower premium, you can still get protection for the most devastating risks: total loss or severe damage.
 

By choosing TLO insurance from Oona, you can:
 

• Protecting the value of the motorcycle from major risks
  
  

• Keep your protection costs low
  
  

• Get a practical and transparent claims process
  
  

• Drive calmly, without fear of losing everything
   

Don't wait until disaster strikes. Protect your motorcycle now with a sensible solution. See products Oona Motor Insurance Now!