Damage Policy
Iron Rent explains motorcycle rental insurance and damage policy in Bali: Damage & Loss Protection, a worked example with real numbers, deductible by bike class, accident procedure, deposit logic and when protection may be void.
What this page covers
Damage & Loss Protection is not full insurance
Iron Rent offers optional Damage & Loss Protection to reduce the renter’s liability for damage or theft of the rented motorcycle. It is designed to make the risk clear before payment, but it is not unlimited full insurance.
Before booking, ask the team to confirm which protection option applies to your bike, rental period and documents.
Protection options
Renter liability can be reduced to 5% of the remaining loss above the deductible, if all rules and accident procedures are followed.
Renter liability can be reduced to 30% of the remaining loss above the deductible, if all rules and accident procedures are followed.
Motorbike rental insurance in Bali: how it works, with a real example
Our insurance covers the motorcycle you rent from us — not third parties, not your own medical costs. You choose the option when you book: MAX (your share 5%) or MIN (your share 30%). Here is what it means in money.
Example. You rent a motorcycle with the MAX option, you have an accident, and the workshop prices the repair at 50,000,000 IDR. Your security deposit was 5,000,000 IDR.
- You pay your deposit: 5,000,000 IDR.
- You pay 5% of the repair cost: 2,500,000 IDR.
- Your total: 7,500,000 IDR.
- The remaining 42,500,000 IDR is covered by Iron Rent as an insurance case.
With the MIN option your share would be 30% of the repair instead of 5%. Without any insurance you would be paying the full repair bill.
The deposit depends on the bike class and the percentage on the option you choose. We confirm both numbers in writing before you pay.
Three conditions for the insurance to apply
The insurance protects you only if the accident is handled the way the contract says. Three things are not negotiable:
- Report the accident to Iron Rent immediately, from the scene, by phone or WhatsApp — so our team can come to the place of the accident. Do not move the bike, leave, or agree anything with the other party before we arrive.
- You must be sober. Any alcohol or drugs in the rider, and the insurance does not apply — you pay the full repair.
- You must be the rider. The insurance covers the person named in the rental contract. If someone else was riding, the insurance does not apply.
- A valid motorcycle licence or IDP with the motorcycle category, and the bike used within the agreed conditions — no track, no off-road on a road bike, no other islands without approval.
Deductible by motorcycle class
The deductible depends on the motorcycle class. If repair cost is lower than the deductible, the actual repair cost may be deducted from the deposit. If repair cost is higher, the deductible plus the remaining split is calculated based on your selected protection option.
| Bike class | Deductible |
|---|---|
| Scooters | 3,000,000 IDR |
| 250cc 2-cylinder | 5,000,000 IDR |
| 250cc 4-cylinder | 10,000,000 IDR |
| 400–600cc | 15,000,000 IDR |
| 600cc+ | 20,000,000 IDR |
| 1000cc | 30,000,000 IDR |
What to do after an accident
- Stop safely and do not move the vehicles unless required for safety.
- Take photos and videos of both vehicles, road position, damage, plates and surroundings.
- Call the police when required and contact Iron Rent immediately by WhatsApp or phone.
- Do not agree to payments or repairs without company confirmation.
- Wait for instructions from the team and provide all documents requested.
When protection can be void
Liability reduction may not apply if rental rules are violated. Examples include riding without a valid motorcycle license, riding under alcohol/drugs, allowing another driver not listed in the contract, ignoring accident procedure, leaving the scene, or using the motorcycle outside the agreed conditions.
Damage policy FAQ
Does the rental insurance cover the motorcycle I rent?
Yes — that is exactly what it covers. With the MAX option you pay your deposit plus 5% of the repair cost, with MIN your deposit plus 30%, and Iron Rent covers the rest as an insurance case. It does not cover third-party vehicles or your medical costs.
What if I had a drink before the accident?
Then the insurance does not apply and you pay the full repair. Being sober is a hard condition, not a formality.
What if my friend was riding the bike when it crashed?
The insurance covers only the rider named in the contract. If another person was riding, the insurance does not apply and the renter pays the full repair.
Why do I have to call you from the scene?
So our team can come to the place of the accident, document it and deal with the other party. If you leave the scene or settle privately, we cannot treat it as an insurance case.
What if someone else damages the bike?
Contact Iron Rent from the scene and follow the procedure. Do not leave the scene or accept verbal promises without documentation.
Does protection cover theft?
Theft terms depend on the selected protection option and compliance with rental rules. MAX or MIN protection can reduce liability to a percentage of the market value when applicable.
Can I choose protection later?
Protection options should be confirmed before payment and before the rental starts.
Ask before booking
Send the bike model and dates. We will confirm deposit, deductible, protection options and the correct accident procedure before payment.