Insurance Claim Policy, Submission Process, and Time Limits for Shipping Insurance Claims

To provide peace of mind and protection for your valuable items, our service includes shipping insurance. However, to ensure that administrative processes and risk management are handled fairly, every claim reimbursement request is subject to a Deductible Fee (Out-of-Pocket Risk Fee) of 10% of the insured item's value.

Applying this deductible helps us ensure that the claims service can operate sustainably while also encouraging shared awareness of the importance of safe packing standards throughout the logistics distribution process.

This article will help you understand:

• The claim reimbursement amount 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 denied

1. What Is the Claim Reimbursement Amount with a 10% Deductible Fee?

The insurance claim reimbursement amount is the amount of funds disbursed to the customer as compensation for the loss of or damage to an insured item. Under this system, the reimbursement is not 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% represents the portion of the risk borne independently by the item owner (customer).

2. Purpose and Benefits of Applying the 10% Deductible Fee

Applying an out-of-pocket risk fee (deductible) is a common standard in the global logistics insurance industry. Its main benefits include:

• Keeping insurance premiums affordable for all customers
• Accelerating the claim approval process through clear risk sharing
• Reducing the potential for claim abuse or manipulation (fraud)
• Encouraging customers and shippers to always use safe, standard packing

3. Example Calculation of the Initial Premium & Claim Disbursement

To activate insurance protection, customers are required to pay an Insurance Fee (Insurance Premium) of 0.5% of the item's value, paid upfront together with the shipping fee.

If an issue occurs (loss or damage) and the claim is approved, the compensation 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 table provides example calculations for various item values:

Important Note:

• The initial insurance fee (0.5%) is an administrative fee for protection during transit and cannot be refunded (it is nonrefundable), whether the shipment is delivered successfully or a claim occurs.
• The claims we process cover ONLY 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 within a maximum of 2 x 24 hours from the time the shipment status becomes Delivered. Submissions made after this deadline cannot be processed by the system.

Step 1: Go to the Claims Menu in the Dashboard

Log in to your account, open the Shipping History menu, select the problematic tracking number, and then click the "Submit Insurance Claim" button.

Step 2: Enter 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

Upload a photo of the invoice, photos of the item's damage, and the required identification documents according to the upload field instructions. Additional Note: If the claimed item 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 Information

Make sure the account number is correct to avoid transfer failures when the claim funds are disbursed.

Step 5: Submit and Wait for the Investigation Results

Review 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 estimated timeline and process are as follows:

1. Initial Investigation & 3PL Document Completion: 14 Business Days: After the customer successfully creates a claim ticket, the team will conduct a field investigation, check the manifest data, and obtain the required supporting documents from the courier/3PL, such as an official Loss Report or Damage Report. These processes run in parallel for a maximum of 14 business days. (Note: This 14-business-day SLA does not include the time required to issue the Official Police Examination Report if that document is required.)
2. Provision of the Official Police Examination Report: As a mandatory reminder, if the claimed item value is above Rp 5,000,000 (Rp 5,000,000), the customer must attach a physical copy of the Official Police Examination Report for the documents to be legally considered complete.
3. Submission to the Insurance Provider: Once all required documents from the 3PL have been declared complete and valid, and the police document has been provided (if required), the documents will be forwarded and formally submitted to the partner insurance provider.
4. Insurance Review Period: The insurance provider has a 5-business-day review period, calculated from the time they receive the complete documents.
5. Claim Approval: The insurance provider will issue an official decision approving the compensation payment (Claim Approval) if the claim is deemed valid.
6. Claim Payment Schedule: After approval is obtained, the disbursement and payment of claim funds from Biteship to your bank account will be processed periodically every Friday.

6. Common Reasons Insurance Claims Are Denied

Please pay attention to the following to prevent your claim from being denied:

• The submission deadline has passed (more than 2 x 24 hours after the package status becomes received).
• The damage was caused by poor internal packing (not using adequate protection for fragile items).
• The item's value registered in the insurance system was intentionally increased (does not match the original invoice).
• The shipped item falls into the category of prohibited items that are not covered by insurance.
• Photos showing the damage are unclear, blurry, or suspected of being 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 packing is very secure?

No. The 10% Deductible Fee policy applies absolutely to every approved insurance claim, regardless of the type or thickness of the packing used.

What if the item value on the invoice differs from the insured amount at the time of the order?

The insurance provider will use the lower value between the actual invoice price and the amount insured at the beginning 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 nonrefundable fee for purchasing protection during transit and therefore cannot be refunded.

8. Conclusion

The insurance feature is available to provide peace of mind when you transact. Understanding the 10% Deductible Fee and the coverage limits from the outset will help you manage your expectations regarding the compensation amount you will receive transparently and without misunderstanding.

Make sure you always document the package unboxing process to facilitate any future claim process.

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