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
| Courier | Insurance Price | Information |
|---|---|---|
| JNE | (0.2% * total_product_price) + Rp5.000 | Fixed admin fee of IDR 5.000 applies. |
| SiCepat | 0.3% * grand_total | Insurance is only applicable if grand_total > IDR 500.000. |
| IDExpress | 0.2% * total_product_price | No additional admin fees. |
| SAP | (0.3% * total_product_price) + Rp2.000/AWB | Additional IDR 2.000 per Air Waybill (AWB). |
| Ninja | 0.25% * 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% x total_product_price |
| J&T | 0.2% * total_product_price | No additional admin fees. |
| Lion | 0.3% * total_product_price | No additional admin fees. |
| GoSend | Rp1.000 for Silver Insurance, Rp2.000 for Gold Insurance, and Rp5.000 for Gold Insurance | No additional admin fees. |
Example using insurance_value
Let’s say a merchant ships an order using JNE, with:
total_product_price= IDR 1.000.000shipping_cost= IDR 25.000grand_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.
- 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. 🚀