Complete Guide to Car Rental Insurance at Ican Transport: Protection and Responsibility of Renters
If you’re looking for a reliable car rental service with various insurance protection options, Ican Transport is the right choice. As a responsible car rental company, Ican Transport offers various car rental insurance options to provide peace of mind while you use their services. However, it’s important to fully understand the insurance policies in place, especially regarding total loss (TLO) insurance and the responsibilities that renters must bear when the rented car is damaged or requires repairs.
We provide a detailed explanation of the insurance coverage used at Ican Transport, including the use of TLO (Total Loss Only) insurance, related repair costs, and the renter’s obligations during the rental period.
Ican Transport offers TLO (Total Loss Only) insurance, which provides coverage for total loss or damage to the rented vehicle. As a renter, you can feel safer knowing that if the car you rent is severely damaged or lost due to an accident or theft, the rental company will cover a significant portion of the costs.
However, it’s important to note that this TLO insurance has limitations that all renters should be aware of. TLO insurance does not cover minor damages, such as scratches on the body of the car, window damage, or repairs due to negligence. This means that if the vehicle suffers damages that don’t meet the criteria for total loss, you as the renter will still be responsible for covering the repair costs.
Total Damage or Vehicle Loss
If the car you rent suffers major damage due to an accident or is lost (e.g., stolen), TLO insurance will cover most of the repair or replacement costs. Of course, terms and conditions apply to this insurance claim, usually requiring the renter to report the incident within a specified time frame and follow the claim procedures set by Ican Transport.
Renter’s Responsibility for Minor Damages
TLO insurance does not cover minor damages such as scratches or light dents. If the vehicle you rented suffers this type of damage, you as the renter are responsible for covering the repair costs directly. It’s essential to be aware of this so you can drive carefully and ensure the vehicle remains in good condition.
Responsibility for Suspension Costs While the Car is in the Workshop
In addition to repair costs, the renter will also be responsible for paying suspension or rental fees for the time the vehicle is being repaired in the workshop. If the car you rent requires extensive repairs or restoration, Ican Transport has the right to ask the renter to pay for the daily rental cost of the vehicle during its downtime.
TLO Insurance Limitations
TLO insurance has limitations regarding the types of damages covered. For example, damages caused by the renter’s negligence, such as driving under the influence, violating traffic laws, or using the vehicle inappropriately, will not be covered by insurance. In these cases, the renter must fully bear the cost of the damage or loss.
In addition to minor damages, there are several things not covered by TLO insurance at Ican Transport:
As a renter using a vehicle from Ican Transport, it’s important to understand that although TLO insurance provides protection, you still have certain responsibilities, including:
Report Incidents Immediately
If an accident or damage occurs to the rented car, you are required to report the incident to Ican Transport within the specified time frame, usually within 24 hours. Failure to report may result in the insurance claim being denied.
Bear the Costs of Minor Damages
As mentioned earlier, TLO insurance only covers total damage or loss of the vehicle. For minor damages, such as scratches or dents, the renter must cover the repair costs.
Suspension Fees While the Car is in the Workshop
If the rented car requires an extended repair period, you will be charged suspension or rental fees for the time the vehicle is unavailable. Therefore, it’s important for renters to ensure the car is in good condition and drive cautiously.
When renting a vehicle through Ican Transport, there are several responsibilities that renters must understand, particularly regarding repair costs and credit suspension fees (daily rental fees) if the rented vehicle is damaged or needs to undergo repairs at the workshop. Understanding these fees is important to avoid confusion and ensure renters are prepared for any financial obligations that may arise during the rental period. Here’s a detailed explanation of both types of costs.
Repair costs refer to the charges that must be paid by the renter if the rented vehicle is damaged due to an accident or other incidents that occur during the rental period. This includes all types of damages that are not covered by TLO (Total Loss Only) insurance or those caused by renter negligence.
Example of Repair Costs: For example, if the rented car gets a scratch on the door due to the renter accidentally hitting a pole while parking, the repair cost will include painting and smoothing the scratch. Since this is a minor damage, it is not covered by TLO insurance, so the renter will bear the entire repair cost.
Credit suspension fees, or daily rental fees, refer to the charges that must be paid by the renter if the rented vehicle requires repairs that take a considerable amount of time and cannot be used during this period.
Credit suspension fees are charged because the rented vehicle is unavailable for use by the renter during the repair process. Since the vehicle still belongs to Ican Transport, the company retains ownership of the vehicle as part of the rental contract. Therefore, the daily rental fee that the renter would have paid for using the vehicle still applies while the car is in the workshop.
Example of Credit Suspension Fees: For instance, if the rented car experiences severe engine damage due to an accident, requiring 7 days of repair, and the daily rental rate is Rp 500,000, the renter will need to pay Rp 2,800,000 for the 7-day repair period, even though the car cannot be used during that time.
The credit suspension fee is calculated based on 80% of the daily rental rate agreed upon in the rental contract. If there are delays or the repair period exceeds the initial estimate, this fee will continue to be charged for as long as the vehicle is unavailable for use.
By understanding the repair costs and credit suspension fees, renters can avoid any surprises and be better prepared for their financial responsibilities during the rental period. It is important to treat the rented vehicle with care and follow all guidelines to minimize the risk of incurring these costs.
Ican Transport provides All-Risk accident insurance for rental vehicles, with various terms regarding the renter’s responsibility for damages or loss. The rental price for self-drive vehicles already includes the insurance coverage cost; however, it is subject to the following terms and conditions regarding the “own risk” responsibility:
Minor Accident A minor accident includes damage to the car or parts of the car, such as scratches, small to medium dents on the body, which do not significantly affect the vehicle’s performance. In the event of a minor accident, the renter will be charged an insurance claim fee and an administrative fee of Rp. 500,000 per incident, plus the cost of 1 day’s rental for the vehicle.
Major Accident A major accident includes more serious damage to the car, such as significant body dents, holes, breaks, cracks, or parts coming off, which require immediate repairs and take a considerable amount of time. In this case, the renter is required to pay an insurance claim fee of Rp. 500,000 per incident, plus compensation for the lost rental income during the repair process. The minimum repair period is 3 days, and the maximum is 2 months of the vehicle’s rental.
Deliberate or Accidental Damage If damage occurs due to the vehicle’s use not in accordance with the established terms, such as traffic violations, flat or worn-out tires due to improper usage, overloading, the vehicle driving through floods, off-road use, or carrying hazardous goods, the insurance will not cover the repair costs. The renter will be fully responsible for the repair costs of the vehicle.
Interior/ Cabin Damage If damage occurs to the vehicle’s interior or cabin, whether intentional or accidental, such as broken or cracked parts, burns, permanent stains (e.g., ink, tattoo), offensive odors (e.g., cigarette smoke, durian, vomit), or bringing pets that leave unpleasant odors, the cost of restoring or replacing the interior will be the full responsibility of the renter. The minimum cost for interior restoration is Rp. 500,000, plus the cost of 1 day’s rental for the vehicle.
Loss of Vehicle or Parts
Renter’s Negligence Loss of the car key or STNK document during the rental period due to the renter’s negligence will be the renter’s responsibility. The cost and service fees for replacing the key or document will be fully borne by the renter.
Important Notes: All insurance claims or compensation costs related to damage or loss will be subject to additional fees to be paid by the renter in accordance with the applicable terms. Make sure to fully understand these terms to avoid unexpected costs during the rental period.
By adhering to these terms, you can enjoy renting a car from Ican Transport with peace of mind, knowing that your vehicle is protected under the applicable insurance terms and conditions.
