Digital financial services firm Visionet International (OVO) accelerates its innovation by launching a bicycle insurance payment service. This time, OVO has created another breakthrough by collaborating with two all-risk bike insurance initiator companies in Indonesia, Qoala Insurtech and Takaful Islamic insurance. This partnership is expected to help users quickly access this insurance through the OVO application.
Amid the COVID-19 pandemic, cycling is a popular activity for commuting to work and exercise between people. The significant burst of interest in cycling spurs the increase of safety concerns for both bicycles and cyclists themselves. Traffic crashes could happen to anyone, and crimes could occur at any time anywhere, especially when millions of people have been pushed out of their job by the pandemic. On top of promoting safety, inspired by people’s desire, OVO utilizes this opportunity to provide accessible bicycle insurance services to satisfy public demand. OVO also carries out this action to demonstrate its commitment to leveraging digital finance development in Indonesia.
“OVO attempts to expand our access to financial services by listening to our customer’s needs. Bicycle protection insurance is a form of our sustainable products to provide comfort and convenience to our customers in protecting their properties from the risk that may occur at any time, such as accidents that may result in any damage or even loss to the customer’s bicycle,” stated Irene Santoso, the Vice President of Financial Services OVO as cited in a press conference on Thursday, (14/1)
As atactic in broadening its market, this service is not solely targeting premium from new vehicles, but also used bicycles with price between IDR 1 million to 250 million and the policyholder age range between 17 to 65. The age of bicycles allowed to register is also comprehensive, namely with maximum usage of five years.
To draw public attention, this product offers complete year protection with a premium only for 2.75 % of the price of a bicycle, on condition the minimum premium is IDR 50,000. This calculated strategy was set up to stimulate sales of its insurance and boost OVO’s presence in Indonesia’s insurance market. Based on OVO’s assumption, this price is affordable and more than just equivalent compared to benefits obtained by customers. By paying the premium, a company provides a repair cost of 90 %, while the face amount for bicycle loss is 70% of the bicycle price.
To enhance customer experience, OVO creates user’s friendly service and simplifies the submission process. By filling out the administration form, uploading bicycle pictures from each side, and paying premium insurance, the customer will immediately acquire twelve months of protection for their valued bicycle. This feature also accommodates customer to claim their insurance.
After OVO launched this feature, this service has received a good response from the public. On an occasion, Azwar Hadi Kusuma, the Founder of ID-Folding Bike, delivered his support and appreciation to OVO for providing access to a product that relieves the cyclist’s concern.
“I see that high public interest in cycling brings positive effects to the decline of ambient pollution level. Despite its remarkable progress, ironically, this attainment is followed by the rise of the crime rate. Following this situation, I appreciate OVO’s contribution in providing the service needed by cyclists, especially for those who often conduct long-distance travel using two-wheeled vehicles (bicycle). My experiences in bicycle communities showed me that damage or loss is possibly happening at any time. With this service, I hope all cyclists feel more secure when cycling and also get protection from the risk of total damage or loss,” Azwar said in a statement. (WLN)
