When you, as expatriate maybe, are offered motor vehicle insurance from one of the Indonesian insurance companies and then you approved it, so when your premium should has been paid ? What the effect of premium payment to the claim process ?. May you should read this article to know more about that, especially if you are lazy or you have no longer time to read all of your policy wording.

Regarding to premium payment method in Indonesian insurance market, it can be viewed at Article 7 of Indonesian Standard Motor Vehicle Insurance Policy (PSAKBI) about Premium Payment. There is stated that for the insurance period for more or equal to 30 (thirty) days, premium payment must be settled within 14 (fourteen) calendar-days from the inception date. It mean that if no other specific arrangement, the determination of premium calculation should be referred to the inception date of your insurance policy and not when your policy received by you. If there is any accident within 14 days as abovementioned, insurer (insurance company) must indemnify insured subject to the premium payment must be settled within that period.

How about the policy status if the premium payment have not been paid yet after 14 calendar days ?. Your policy then will be terminated automatically and if there is any loss or damage to your vehicle, insurer will not obligate to indemnify your loss.  

Premium payment can be arranged by cash, cheque, bilyet, electronic transfer, or other method that has been agreed by both insurer and insured. Insurer then assumed has been received payment in the condition of receiving cash payment, premium transferred by insured has been entered to insurer’s bank account, or by specific agreement in written statement.