City plans to insure parked cars on streets
City plans to insure parked cars on streets
The Jakarta Post, Jakarta
The city administration plans to insure all vehicles parked on
street shoulders with the potential compensation reaching up to
Rp 200 million (US$22,222), an official says.
The deputy chief of city parking operator BP Parkir, Bambang
Rahmanto, said on Wednesday that many insurance companies had
expressed a readiness to become partners of the administration.
"There are many companies that have made good offers, but we
have not made a decision on which will become our partner," said
Bambang, adding that the insurance scheme was part of the effort
to improve services.
He refused, however, to name any of the firms involved.
Bambang's statement comes after the administration proposed a
200 percent increase in the on-street parking charge from Rp
1,000 per hour to Rp 3,000 for the first hour and Rp 2,000 for
each subsequent hour.
Many city councillors, however, have objected to the tariff
hike plan because, they say, the on-street parking regime in the
city is fraught with corruption. Last year, BP Parkir could only
contribute Rp 14 billion to the city coffers, far bellow its
potential.
Bambang said that the on-street parking insurance would cover
75 percent of the vehicle's replacement value up to a maximum of
Rp 200 billion for vehicles lost or damaged while parked on
street shoulders.
According to the official, parking tickets would thus become
very important for car owners as they would be necessary for
making any insurance claims.
Meanwhile, a number of insurance company executives expressed
skepticism that there were actually insurance companies
interested in providing on-street parking insurance.
According to the senior relationship manager of a vehicle
insurance company identifying himself only as Ade, insurance
companies usually only collected premiums from individuals or
organizations.
Ade said the number of vehicles to be insured needed to be
certain as this was related to the level of premiums that would
be charged.
"The number of cars parked on street shoulders is not certain.
On what basis will BP Parkir calculate the size of the premiums?.
The level of the premiums must be in line with the number of
cars," he added.
The Jakarta Post, Jakarta
The city administration plans to insure all vehicles parked on
street shoulders with the potential compensation reaching up to
Rp 200 million (US$22,222), an official says.
The deputy chief of city parking operator BP Parkir, Bambang
Rahmanto, said on Wednesday that many insurance companies had
expressed a readiness to become partners of the administration.
"There are many companies that have made good offers, but we
have not made a decision on which will become our partner," said
Bambang, adding that the insurance scheme was part of the effort
to improve services.
He refused, however, to name any of the firms involved.
Bambang's statement comes after the administration proposed a
200 percent increase in the on-street parking charge from Rp
1,000 per hour to Rp 3,000 for the first hour and Rp 2,000 for
each subsequent hour.
Many city councillors, however, have objected to the tariff
hike plan because, they say, the on-street parking regime in the
city is fraught with corruption. Last year, BP Parkir could only
contribute Rp 14 billion to the city coffers, far bellow its
potential.
Bambang said that the on-street parking insurance would cover
75 percent of the vehicle's replacement value up to a maximum of
Rp 200 billion for vehicles lost or damaged while parked on
street shoulders.
According to the official, parking tickets would thus become
very important for car owners as they would be necessary for
making any insurance claims.
Meanwhile, a number of insurance company executives expressed
skepticism that there were actually insurance companies
interested in providing on-street parking insurance.
According to the senior relationship manager of a vehicle
insurance company identifying himself only as Ade, insurance
companies usually only collected premiums from individuals or
organizations.
Ade said the number of vehicles to be insured needed to be
certain as this was related to the level of premiums that would
be charged.
"The number of cars parked on street shoulders is not certain.
On what basis will BP Parkir calculate the size of the premiums?.
The level of the premiums must be in line with the number of
cars," he added.