{"id":9005,"date":"2025-11-07T16:05:56","date_gmt":"2025-11-07T09:05:56","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=9005"},"modified":"2025-11-07T16:05:56","modified_gmt":"2025-11-07T09:05:56","slug":"kecelakaan-proyek-di-cianjur-bikin-klaim-tersendat-asuransinya-tidak-sesuai-kontrak","status":"publish","type":"post","link":"http:\/\/ligaasuransi.com\/en\/kecelakaan-proyek-di-cianjur-bikin-klaim-tersendat-asuransinya-tidak-sesuai-kontrak\/","title":{"rendered":"A project accident in Cianjur has stalled claims: insurance coverage was not in line with the contract."},"content":{"rendered":"

<\/p>\n

The Infrastructure Project Boom in Bogor and Surrounding Areas<\/span><\/h3>\n

In recent years, Bogor and Cianjur regencies have become centers of major infrastructure development \u2014 from new toll roads and inter-regional bridges to housing projects and tourism and energy facilities.<\/span><\/p>\n

Hundreds of contractors and subcontractors are involved, some using Engineering, Procurement, and Construction (EPC) schemes that involve many parties, many risks, and of course many potential problems.<\/span><\/p>\n

However, amidst the boom in construction projects, fundamental errors in insurance arrangements are still common. As a result, when accidents occur on the job, insurance claims are stalled\u2014even though the project is already behind schedule and funding has run out.<\/span><\/p>\n

One of the most interesting cases occurred in the Cugenang area, Cianjur, where a public facility construction project was completely halted because the contractor’s insurance claim could not be paid due to a discrepancy between the policy and the project contract.<\/span><\/p>\n

Claim Failed Due to Incorrect Policy Format<\/b><\/p>\n

A local contractor company won the tender for a government building construction project worth Rp 75 billion in Cianjur.<\/span>
\n<\/span>According to the contract with the local government, they are required to have:<\/span><\/p>\n

    \n
  1. Contractor\u2019s All Risks (CAR) Insurance<\/span><\/li>\n
  2. Third Party Liability (TPL) Insurance<\/span><\/li>\n<\/ol>\n

    These two policies must be issued in the joint name (joint insured) between the local government as principal, main contractor, and supervising consultant.<\/span><\/p>\n

    Unfortunately, in a rush, the contractor purchased a CAR policy from an insurance company through an agent, without paying attention to the clauses and underwriting structure required in the contract.<\/span><\/p>\n

    Several months later, while the casting of the third floor was underway, the scaffolding collapsed and hit workers and passing vehicles.<\/span>
    \n<\/span>Losses reached more than Rp 2 billion, including structural damage and compensation to third parties.<\/span><\/p>\n

    However, when the contractor filed a claim, the insurance rejected it on administrative and technical grounds:<\/span><\/p>\n

      \n
    • The name of the insured does not match the project contract.<\/span><\/li>\n
    • There is no endorsement that includes the principal (local government).<\/span><\/li>\n
    • There is no extension of guarantee for \u201csurrounding property\u201d and \u201ccross liability\u201d.<\/span><\/li>\n
    • Some work items are not included in the schedule of insured work values.<\/span><\/li>\n<\/ul>\n

       <\/p>\n

      Ultimately, the claim failed to be processed. The project stalled for months, the contractor was penalized, and the project owner’s reputation was damaged.<\/span><\/p>\n

      This case demonstrates the devastating consequences of mistakes in preparing project insurance documents \u2014 mistakes that could have easily been prevented if a professional insurance broker had been on hand from the start.<\/span><\/p>\n

      Why Are There Many Failed Project Claims in Bogor and Cianjur?<\/span><\/h3>\n

      Based on the experience of PT. Liberty and General Insurance Broker (L&G), which has handled dozens of EPC, infrastructure, and construction projects in West Java, there are five main reasons why project insurance claims often fail or are delayed for a long time.<\/span><\/p>\n

        \n
      1. The policy does not comply with the contract requirements.<\/b><\/li>\n<\/ol>\n

        Many contractors don’t read the details of their work contracts, even though they often contain important clauses such as:<\/span><\/p>\n

          \n
        • \u201cInsurance to be arranged jointly in the name of Owner, Contractor, and Consultant.\u201d<\/span><\/li>\n
        • \u201cPolicy must include waiver of subrogation and cross liability.\u201d<\/span><\/li>\n
        • \u201cSum insured must cover full contract value, including temporary works.\u201d<\/span><\/li>\n<\/ul>\n

           <\/p>\n

          If this clause is not followed exactly, the policy is deemed to be out of contract and may be rejected by both the project owner and the insurance company.<\/span><\/p>\n

            \n
          1. Purchasing Insurance Directly Without Broker Assistance<\/b><\/li>\n<\/ol>\n

            Because it is considered just a formality, many contractors buy policies directly from insurance agents without detailed explanation.<\/span>
            \n<\/span>In fact, the agent only represents the interests of the insurance company, not the interests of the insured.<\/span><\/p>\n

            As a result, many important things are overlooked \u2014 such as the definitions of \u201ccontract site,\u201d \u201cmaintenance period,\u201d and \u201cprincipal inclusion.\u201d<\/span>
            \n<\/span>When a claim occurs, the contractor realizes that their policy was not designed for the project at hand.<\/span><\/p>\n

              \n
            1. The insurance value does not match the contract value.<\/b><\/li>\n<\/ol>\n

              Often contractors insure projects based only on the value of the primary materials (e.g. concrete and steel structures), without including important components such as:<\/span><\/p>\n

                \n
              • Temporary works costs<\/span><\/li>\n
              • MEP installation costs<\/span><\/li>\n
              • Labor and supervision costs<\/span><\/li>\n
              • Profit margin<\/span><\/li>\n<\/ul>\n

                 <\/p>\n

                In fact, in an EPC contract, all of these elements are part of the project value that must be insured.<\/span><\/p>\n

                When a large claim occurs, insurance calculates compensation based on the insured value alone \u2014 as a result, claims are paid for only a fraction of the actual loss.<\/span><\/p>\n

                  \n
                1. No Expansion for Additional Risks<\/b><\/li>\n<\/ol>\n

                  Construction projects in the Bogor and Cianjur areas are vulnerable to additional risks such as:<\/span><\/p>\n

                    \n
                  • Earthquakes, floods and landslides<\/span><\/li>\n
                  • Design errors or construction failures<\/span><\/li>\n
                  • Damage to surrounding property (<\/span>surrounding property<\/span><\/i>)<\/span><\/li>\n
                  • Third party injury<\/span><\/li>\n<\/ul>\n

                     <\/p>\n

                    Unfortunately, many policies do not include this extended coverage, so claims related to disasters or third parties are immediately rejected.<\/span><\/p>\n

                      \n
                    1. Incomplete Claim Documentation<\/b><\/li>\n<\/ol>\n

                      Many contractors have difficulty preparing the documents requested by insurance companies when making claims, such as:<\/span><\/p>\n

                        \n
                      • Chronological photos before and after the incident<\/span><\/li>\n
                      • Internal and third-party investigation reports<\/span><\/li>\n
                      • Work plan (method statement)<\/span><\/li>\n
                      • Proof of value of damaged work<\/span><\/li>\n<\/ul>\n

                         <\/p>\n

                        Without complete documentation,<\/span>loss adjuster<\/span><\/i>unable to verify claims, and ultimately the case drags on without resolution.<\/span><\/p>\n

                        The Strategic Role of L&G Insurance Brokers in Construction Projects<\/span><\/h3>\n

                        As an independent insurance broker, L&G Insurance Broker has extensive experience in handling EPC, infrastructure, and public development project insurance in Indonesia \u2014 including in the Bogor, Cianjur, and Sukabumi areas.<\/span><\/p>\n

                        Here’s how L&G helps contractors and project owners avoid mistakes like the one above.<\/span><\/p>\n

                          \n
                        1. Review and Adjustment of Insurance Contracts<\/b><\/li>\n<\/ol>\n

                          L&G reviewed all contract documents (especially the<\/span>Insurance Requirement Clause<\/span><\/i>) to ensure that every provision is reflected in the policy.<\/span>
                          \n<\/span>The result: the policy fully meets the contractual requirements and is acceptable to both the project owner and the supervising consultant.<\/span><\/p>\n

                            \n
                          1. Preparation of a Comprehensive Insurance Program<\/b><\/li>\n<\/ol>\n

                            L&G designed an insurance program consisting of:<\/span><\/p>\n

                              \n
                            • Contractor\u2019s All Risks (CAR) \u2013 Covers physical damage to construction work.<\/span><\/li>\n
                            • Third Party Liability (TPL) \u2013 Guarantees legal liability to third parties.<\/span><\/li>\n
                            • Workmen\u2019s Compensation \/ Personal Accident \u2013 \u200b\u200bProtects project workers from injury or death.<\/span><\/li>\n
                            • Equipment All Risks (EAR) \u2013 Covers heavy equipment at the project site.<\/span><\/li>\n
                            • Professional Indemnity (PI) \u2013 Covers the liability of consultants and designers.<\/span><\/li>\n
                            • Delay in Start-Up (DSU) \u2013 Protects against potential financial losses due to delays in project completion.<\/span><\/li>\n<\/ul>\n

                               <\/p>\n

                              All are arranged with additional clauses as needed such as<\/span>cross liability<\/span><\/i>, <\/span>principal inclusion<\/span><\/i>, <\/span>automatic reinstatement<\/span><\/i>, And <\/span>maintenance cover.<\/span><\/i><\/p>\n

                                \n
                              1. Negotiate the Best Premium and Policy Terms<\/b><\/li>\n<\/ol>\n

                                As an independent broker, L&G is not tied to any one insurance company.<\/span>
                                \n<\/span>The L&G team will select and negotiate offers from various reputable companies to obtain competitive premiums and the most comprehensive coverage.<\/span><\/p>\n

                                  \n
                                1. Monitoring and Certificate of Insurance (COI) According to the Project<\/b><\/li>\n<\/ol>\n

                                  For government or state-owned enterprise projects, each contractor is required to submit a Certificate of Insurance (COI) which shows the validity of the policy.<\/span>
                                  \n<\/span>L&G ensures that all certificates are issued in accordance with the work contract, including the inclusion of the names of all relevant parties.<\/span><\/p>\n

                                    \n
                                  1. Full Assistance During Claims<\/b><\/li>\n<\/ol>\n

                                    When an accident occurs, the L&G claims team immediately steps in to help:<\/span><\/p>\n

                                      \n
                                    • Prepare claim reports according to insurance format,<\/span><\/li>\n
                                    • Prepare evidence and photos of the incident,<\/span><\/li>\n
                                    • Coordinate communication with<\/span>loss adjuster<\/span><\/i>,<\/span><\/li>\n
                                    • Negotiate claim settlement to get paid in full and quickly.<\/span><\/li>\n<\/ul>\n

                                       <\/p>\n

                                      The result: claims are paid, projects are not delayed, and relations with the principal remain good.<\/span><\/p>\n

                                      Case Study: Successful Claims After L&G Assistance<\/b><\/p>\n

                                      One of L&G’s clients, an EPC company handling a bridge project in East Bogor, experienced a temporary collapse of the formwork during pier casting.<\/span>
                                      \n<\/span>The loss was around Rp. 1.8 billion.<\/span><\/p>\n

                                      Initially, the insurance company refused because it was considered to be due to \u201cdefective workmanship.\u201d<\/span>
                                      \n<\/span>However, L&G looked into the policy details and found a \u201cLEG 2\/96 clause\u201d which provided coverage for physical damage due to faulty workmanship.<\/span><\/p>\n

                                      With technical arguments and field evidence, L&G managed to convince<\/span>loss adjuster<\/span><\/i>.<\/span>
                                      \n<\/span>As a result, the claim was paid in full within 45 days.<\/span>
                                      \n<\/span>The project was completed on time, and the contractor’s reputation was maintained.<\/span><\/p>\n

                                      Important Lessons for Contractors and Project Owners in Bogor-Cianjur<\/b><\/p>\n

                                        \n
                                      • Project insurance is not just a formality, but a vital part of risk management.<\/span><\/li>\n
                                      • Every detail of the contract must be reflected in the policy.<\/span><\/li>\n
                                      • Avoid purchasing insurance directly without professional assistance.<\/span><\/li>\n
                                      • Ensure that the policy value and coverage match the actual project conditions.<\/span><\/li>\n
                                      • Use an experienced broker to help with the claims process.<\/span><\/li>\n<\/ul>\n

                                        Why Choose L&G Insurance Broker<\/b><\/p>\n

                                        \u2705<\/span>Over 30 years of experience in project and industrial insurance.<\/span>
                                        \n<\/span>\u2705<\/span>Has handled EPC projects worth hundreds of millions of dollars throughout Indonesia.<\/span>
                                        \n<\/span>\u2705<\/span>Professional technical and claims team with in-depth understanding of FIDIC contracts and international insurance standards.<\/span>
                                        \n<\/span>\u2705<\/span>Work independently and on the client’s side.<\/span>
                                        \n<\/span>\u2705<\/span>Registered and supervised by the Financial Services Authority (OJK).<\/span><\/p>\n

                                        Conclusion: Accidents Can Happen, But Claims Must Not Fail<\/span><\/h3>\n

                                        In the construction industry, the risk of accidents is unavoidable. However, financial losses can be minimized if the project is supported from the outset by properly designed insurance and supported by a professional broker like L&G.<\/span><\/p>\n

                                        Failed claims are often not due to disaster, but due to lack of knowledge and assistance.<\/span>
                                        \n<\/span>Don’t let administrative errors destroy your reputation and project’s viability.<\/span><\/p>\n

                                        \ud83d\udd39<\/b>Contact L&G Insurance Broker Now<\/b><\/p>\n

                                        For free consultation regarding construction project insurance and EPC in the Bogor, Cianjur and surrounding areas:<\/span>
                                        \n<\/span>\ud83d\udce7<\/span> info@lngrisk.co.id<\/span>
                                        \n<\/span>\ud83c\udf10<\/span> www.lngrisk.co.id<\/span>
                                        \n<\/span>\ud83d\udcde<\/span> (+62) 21-xxxx-xxxx<\/span><\/p>\n

                                         <\/p>","protected":false},"excerpt":{"rendered":"

                                        The Infrastructure Project Boom in Bogor and Surrounding Areas In recent years, Bogor and Cianjur regencies have become centers of major infrastructure development \u2014 from new toll roads and inter-regional bridges to housing projects and tourism and energy facilities. Hundreds of contractors and subcontractors are involved, some using Engineering, Procurement, and Construction (EPC) schemes that […]<\/p>\n","protected":false},"author":2,"featured_media":9006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[1423,560],"class_list":{"0":"post-9005","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-risk-recommendation","8":"tag-bogor","9":"tag-risk-recommendation"},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/comments?post=9005"}],"version-history":[{"count":1,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9005\/revisions"}],"predecessor-version":[{"id":9007,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/posts\/9005\/revisions\/9007"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/media\/9006"}],"wp:attachment":[{"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/media?parent=9005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/categories?post=9005"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ligaasuransi.com\/en\/wp-json\/wp\/v2\/tags?post=9005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}