To provide peace of mind and protection for your valuable goods, our service is equipped with a shipping insurance feature. However, to ensure that administrative processes and risk management are carried out fairly, every compensation claim submission is subject to a Deductible Fee (Own-Risk Fee) of 10% of the insured item's value.
The application of this deduction helps us ensure that the claims service can continue sustainably, while also encouraging shared awareness of the importance of safe packaging standards during the logistics distribution process.
This article will help you understand:
- The amount of insurance claim compensation with a 10% deductible fee
- The benefits and purpose of applying the deductible fee
- How to calculate the initial premium and the net claim amount you will receive
- The process and steps for submitting an insurance claim
- The stages of the investigation and review process, through to the fund disbursement schedule
- The main reasons insurance claims are rejected
1. What Is the Claim Compensation Amount with a 10% Deductible Fee?
The insurance claim compensation amount is the sum of money disbursed to the customer as compensation for the loss of or damage to the insured item. Under this system, the compensation provided does not cover 100% of the item's value, but is reduced by a 10% Deductible Fee.
This means that if your claim is approved, the insurance provider will cover 90% of the total value of the registered item, while the remaining 10% is the portion of risk borne independently by the item owner (customer).
2. Purpose and Benefits of Applying the 10% Deductible Fee
The application of an own-risk fee (deductible) is a common standard in the global logistics insurance industry. Its main benefits include:
- Keeping insurance premiums affordable for all customers
- Speeding up the claim approval process through clear risk sharing
- Reducing the potential for claim abuse or manipulation (fraud)
- Encouraging customers and senders to always use safe, standard packaging
3. Simulation of Initial Premium and Claim Disbursement Calculations
To activate insurance protection, customers are required to pay an Insurance Fee (Insurance Premium) of 0.5% of the item's value, paid directly upfront together with the shipping fee.
If an issue occurs (loss/damage) and the claim is approved, the compensation amount disbursed will be the item's value minus the 10% Deductible Fee. Please note that the maximum claim coverage limit is Rp 50,000,000. If the item's value exceeds Rp 50,000,000, the compensation will still be calculated based on the maximum amount of Rp 50,000,000 after deducting the 10% Deductible Fee (maximum net disbursement: Rp 45,000,000).
The following is a calculation simulation table for various item values:
| Item Value (Invoice) | Initial Insurance Fee (0.5% of Item Value - Paid Together with Shipping Fee) | Deductible Fee Deduction (10% upon Claim Approval) | Total Compensation Funds Disbursed (90%) |
|---|---|---|---|
| Rp 500,000 | Rp 2,500 | Rp 500,000 x 10% = Rp 50,000 | Rp 450,000 |
| Rp 1,000,000 | Rp 5,000 | Rp 1,000,000 x 10% = Rp 100,000 | Rp 900,000 |
| Rp 5,000,000 | Rp 25,000 | Rp 5,000,000 x 10% = Rp 500,000 | Rp 4,500,000 |
| Rp 50,000,000 | Rp 250,000 | Rp 50,000,000 x 10% = Rp 5,000,000 | Rp 45,000,000 |
| Rp 75,000,000 (Exceeds the Coverage Limit) | Rp 375,000 | Rp 50,000,000 x 10% = Rp 5,000,000 (Calculated based on the maximum limit) |
Rp 45,000,000 (Compensation remains limited to the maximum limit) |
Important Note:
- The initial insurance fee (0.5%) is the cost of protection administration during transit and is therefore non-refundable (forfeited), whether the shipment proceeds smoothly or a claim occurs.
- The claims we process ONLY cover the item's value and do not include a claim for the return of the shipping fee that has already been paid.
4. Insurance Claim Process & How to Submit a Claim
It is important to understand that the deadline for submitting an insurance claim ticket is a maximum of 2x24 hours from the time the shipment status becomes Delivered. Submissions made after this deadline cannot be processed by the system.
Step 1: Access the Claims Menu in the Dashboard
Log in to your account, open the Shipping History menu, select the problematic tracking number, then click the "Submit Insurance Claim" button.
Step 2: Fill in the Incident Chronology
Write a brief, concise, and clear chronology explaining how the item was damaged or lost during the shipping process.
Step 3: Upload Documents & Supporting Evidence
Provide a photo of the invoice, a photo of the damaged item, and the required identification documents according to the upload field instructions. Additional Note: If the claimed item's value is above Rp 5,000,000 (Rp 5,000,000), the customer MUST attach an Official Police Examination Report.
Step 4: Enter Your Bank Account Details
Ensure that the account number is correct to avoid transfer failure when the claim funds are disbursed.
Step 5: Submit and Wait for the Investigation Results
Recheck all the information, then click "Submit". Your claim ticket will be created in the system and proceed to the investigation stage.
5. How Long Do the Claim Investigation and Disbursement Processes Take?
The logistics insurance review process involves several structured validation stages. The following are the estimated timelines and handling process:
- Initial Investigation & Completeness of 3PL Documents: After the customer successfully creates a claim ticket, the team will conduct a field investigation, check the data manifest, and complete the mandatory supporting documents from the courier/3PL side (such as an official Loss Report or Damage Report). This series of processes runs in parallel for a maximum of 14 business days. (Note: The 14-business-day SLA does not include the time required to issue the Official Police Examination Report if the document is required).
- Provision of the Official Police Examination Report: As a mandatory reminder, if the claimed item's value is above Rp 5,000,000 (Rp 5,000,000), the customer must attach a physical copy of the Official Police Examination Report so that the documents can be deemed legally complete.
- Submission to the Insurance Provider: Once all documents from the 3PL side have been deemed complete and valid, and the documents from the police have been fulfilled (if required), the documents will be forwarded and officially submitted to the partner insurance provider.
- Insurance Review Period: The insurance provider has a review period of 5 business days, calculated from the time they receive the complete documents.
- Claim Approval: The insurance provider will issue an official decision approving the compensation payment (Claim Approval) if the submission is deemed valid.
- Claim Payment Schedule: After approval is obtained, the claim funds will be disbursed and paid by Biteship to your bank account periodically, every Friday of each week.
6. Common Reasons Insurance Claims Are Rejected
Please pay attention to the following points to prevent your claim from being rejected:
- The submission deadline has passed (more than 2x24 hours after the package status becomes received).
- The damage was caused by poor internal packaging (not using adequate protection for fragile items).
- The item's value registered in the insurance system was intentionally inflated (not in accordance with the original invoice).
- The shipped item belongs to the category of prohibited items (Prohibited Items) that are not covered by insurance.
- The photographic evidence of the damage is unclear, blurry, or suspected to have been digitally manipulated.
- The Official Police Examination Report was not attached for items valued above Rp 5,000,000.
7. FAQ (Frequently Asked Questions)
Can the 10% deduction be waived if my packaging is very secure?
No. The 10% Deductible Fee policy is mandatory for every approved insurance claim submission, regardless of the type or thickness of the packaging used.
What if the item's invoice value differs from the insurance amount at the time of the order?
The insurance provider will use the lower value between the actual invoice price and the insured amount specified at the start of shipping to prevent over-insuring.
Will the initial insurance premium be refunded if I submit a claim?
No. The insurance premium paid upfront is a non-refundable fee for purchasing the protection contract during transit.
8. Conclusion
The insurance feature is provided to give you peace of mind when making transactions. Understanding the 10% Deductible Fee provisions and the coverage limits from the beginning will help you manage your expectations regarding the compensation amount you will receive transparently and without misunderstandings.
Be sure to always document the package unboxing process to make future claim processing easier.
If you need further assistance regarding the calculation or status of your claim, please contact our Customer Care team by email at Support@biteship.com