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About Insurance

When creating an order via the store_order endpoint, users have the option to include insurance coverage for their shipments. Insurance is used to protect the value of the shipped goods in case of damage or loss during transit.

How
insurance_value
is Calculated

The insurance_value is determined based on the total product price (total_product_price) in an order and the specific courier’s insurance policy. Each courier has its own insurance calculation method, as shown in the table below:

Identify the
insurance_value

CourierInsurance PriceInformation
JNE(0.2% *
total_product_price
) + Rp5.000		Fixed admin fee of IDR 5.000 applies.
SiCepat0.3% *
grand_total
Insurance is only applicable if grand_total > IDR 500.000.
IDExpress0.2% *
total_product_price
No additional admin fees.
SAP(0.3% *
total_product_price
) + Rp2.000/AWB		Additional IDR 2.000 per Air Waybill (AWB).
Ninja0.25% *
total_product_price
If
total_product_price
≤ IDR 1.000.000,
insurance_value
= IDR 2.500.
If
total_product_price
> IDR 1.000.000,
insurance_value
= 0.25% ×
total_product_price
.
J&T0.2% *
total_product_price
No additional admin fees.
Lion0.3% *
total_product_price
No additional admin fees.
GoSendRp1.000 for Silver Insurance,
Rp2.000 for Gold Insurance,
Rp5.000 for Platinum Insurance		No additional admin fees.

Example using
insurance_value

Let’s say a merchant ships an order using JNE, with:

  • total_product_price
    = IDR 1.000.000
  • shipping_cost
    = IDR 25.000
  • grand_total
    = IDR 1.025.000

Using JNE formulas :

(0.2% x 1000000) + 5000 = 2000 + 5000 = IDR 7000

So, the insurance cost

insurance_value
= IDR 7.000.

Impact of Insurance on Net Profit

Insurance costs directly affect the merchant’s net profit. The formula for net profit is:

net_profit = cod_value - (shipping_cost - shipping_cashback) - service_fee - insurance_value

If the merchant wants to pass the insurance cost to the buyer, they should add the same amount as insurance_value to additional_cost when creating the order.

:::warning

  • Minimum of
    insurance_value
    : The minimum order value eligible for insurance is IDR 300,000.
  • Accuracy of Calculation: Ensure that total_product_price and grand_total are correctly inputted to avoid discrepancies in insurance cost.
  • Mandatory for High-Value Shipments: Some couriers require insurance for orders exceeding a certain value threshold (e.g., SiCepat for grand_total > IDR 500,000). :::

By properly including insurance in your orders, you ensure that your shipments are protected while maintaining a clear and accurate cost structure. 🚀

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