Indonesian e-wallet OVO unveils motorcycle insurance for users

It is the first e-wallet in Indonesia to offer motorcycle insurance with monthly premiums.

PT Visionet Internasional (OVO) has become the first e-wallet in Indonesia to launch motorcycle insurance with monthly premiums, with the aim of expanding insurance coverage by making premiums more affordable.

The Asuransi Motor product is offered exclusively on the OVO app as part of OVO’s insurance vertical, in collaboration with leading domestic insurance company Asuransi Simas Insurtech, together with PT Futuready Insurance Broker as the broker.

Motorcycles are the primary form of wheeled transportation for Indonesia’s 270-million strong population, with around 117 million motorcycles in the country in 2020, or one motorcycle for every two people. According to data from the Federation of Asian Motorcycle Industries, Indonesia is the largest market for two-wheeled vehicles in the Association of Southeast Asian Nations.

The Asuransi Motor product is designed to tackle major barriers to insurance adoption, namely the cost and perceived difficulty in the insurance purchase and claim journey. Premiums start as low as IDR 15,000, - (US$1.34) a month, with benefits covering 75% or more of the total motorcycle replacement cost, and the product can be seamlessly purchased on the OVO digital application.

”The loss or damage of a motorcycle can pose serious financial consequences for many families, as well as knock-on effects on the ability to get to work and school. However, many Indonesians still do not have private insurance and are therefore vulnerable to risk. Nearly 50% of respondents that we surveyed were interested in vehicle insurance,” OVO Vice President of Financial Services Irene Santoso said.

OVO is a digital wallet and financial services platform with a nationwide user base that spans all of Indonesia’s 34 provinces.