{"id":9250,"date":"2025-11-28T12:35:04","date_gmt":"2025-11-28T05:35:04","guid":{"rendered":"https:\/\/ligaasuransi.com\/?p=9250"},"modified":"2025-11-28T12:35:04","modified_gmt":"2025-11-28T05:35:04","slug":"terungkap-ini-jenis-asuransi-yang-paling-berisiko-saat-erupsi-semeru-melanda-november-2025","status":"publish","type":"post","link":"http:\/\/ligaasuransi.com\/en\/terungkap-ini-jenis-asuransi-yang-paling-berisiko-saat-erupsi-semeru-melanda-november-2025\/","title":{"rendered":"RevealedThis is the Riskiest Type of Insurance When Mount Semeru Erupts in November 2025"},"content":{"rendered":"

Liga Asuransi –<\/b>The Mount Semeru eruption in November 2025 has reached Level IV (Alert) status according to the Geological Agency, following a drastic increase in volcanic activity and the potential danger of volcanic ash and pyroclastic flows. The impact is palpable: hundreds of residents in Lumajang have been evacuated, while thick ash blankets villages within the danger zone.<\/span><\/p>\n

Beyond the physical damage caused by natural disasters, eruptions like these also trigger a surge in insurance risks that can be significant\u2014especially for companies and individuals with certain policies. Certain types of insurance may face significant claims pressure, ranging from property damage and business interruption to logistical losses and third-party liability.<\/span><\/p>\n

This article will reveal the types of insurance most vulnerable to the impact of the Semeru eruption, explain how the risk of claims can increase, and provide important insights for policyholders and brokers to take appropriate mitigation steps.<\/span><\/p>\n

For your business at risk of natural disasters, working with L&G Insurance Broker can be a crucial protection strategy. We’ll help you review your policy, evaluate your risk exposure, and thoroughly prepare for disaster claims scenarios so you’re not caught off guard when disaster strikes.<\/span><\/p>\n

The Riskiest Types of Insurance When Mount Semeru Erupts in November 2025<\/span><\/h3>\n

A major eruption like Semeru in November 2025 triggered diversions that have a direct impact on the world of insurance. The following are the type of insurance that is most affected and has the potential to experience a surge in claims:<\/span><\/p>\n

1. Property All Risks (PAR) \/ Industrial All Risks (IAR)<\/span><\/h4>\n

This type of insurance covers physical damage to buildings, machinery, equipment, and inventory. The Semeru eruption poses significant threats, including:<\/span><\/p>\n

    \n
  • Damage caused by volcanic ash that buried roofs and damaged building structures.<\/span><\/li>\n
  • Vibrations and ejections of material can damage facilities within a radius of several kilometers.<\/span><\/li>\n
  • Dust contamination of industrial machinery and electronics\u2014damage that is very expensive to repair.<\/span><\/li>\n
  • Potential for secondary fires due to the interaction of heat and combustible materials.<\/span><\/li>\n<\/ul>\n

    The Lumajang, Probolinggo, and Malang areas were recorded as the areas most at risk of being affected by thick ash, resulting in many factories and warehouses having to stop operating.<\/span><\/p>\n

    2. Business Interruption (BI)<\/span><\/h4>\n

    BI always works hand in hand with PAR. When buildings, machinery, or supply chains are impacted, companies will experience:<\/span><\/p>\n

      \n
    • Shutdown operational due to ash cleaning.<\/span><\/li>\n
    • Power outages and road access blocked by volcanic material.<\/span><\/li>\n
    • Distribution is hampered, especially from Malang\u2013Lumajang\u2013Jember.<\/span><\/li>\n
    • Decline in production and income.<\/span><\/li>\n<\/ul>\n

      BI is one of the largest types of claims when a disaster such as Semeru occurs.<\/span><\/p>\n

      3. Marine Cargo Insurance (Logistics Shipping)<\/span><\/h4>\n

      The Semeru eruption had a direct impact on transportation routes:<\/span><\/p>\n

        \n
      • Land routes were closed due to thick ash, especially the Lumajang\u2013Malang route.<\/span><\/li>\n
      • Rerouting increases the risk of delays.<\/span><\/li>\n
      • Damage to goods during transit due to volcanic ash entering the container or vehicle bed.<\/span><\/li>\n
      • Risk of accidents on the road due to minimal visibility.<\/span><\/li>\n<\/ul>\n

        Cargo is a type of insurance that is often overlooked but is the one that most often experiences claims when natural disasters strike.<\/span><\/p>\n

        4. Heavy Equipment Insurance (Heavy Equipment)<\/span><\/h4>\n

        A lot of heavy equipment operates in the Semeru volcano-prone area, particularly for sand mining and infrastructure projects. Volcanic ash can cause:<\/span><\/p>\n

          \n
        • Dust entering the engine can cause permanent damage.<\/span><\/li>\n
        • Overheating of the cooling system.<\/span><\/li>\n
        • Loss of hydraulic pressure.<\/span><\/li>\n
        • The glass surface and sensor become non-functional.<\/span><\/li>\n<\/ul>\n

          Heavy equipment damage from ash often results in large claims, especially for units such as excavators, loaders, and dump trucks.<\/span><\/p>\n

          5. Motor Vehicle Insurance<\/span><\/h4>\n

          Thousands of vehicles were affected by thick ash during the eruption. Claim risks include:<\/span><\/p>\n

            \n
          • Water hammer machine if the vehicle is determined to hit volcanic mud.<\/span><\/li>\n
          • Paint and body damage due to exposure to abrasive ash.<\/span><\/li>\n
          • Damage to the air filter and electrical system.<\/span><\/li>\n
          • Accidents due to poor visibility in ash exposure areas.<\/span><\/li>\n<\/ul>\n

            This type of vehicle claim during a disaster often occurs in large numbers at once.<\/span><\/p>\n

            Why is the Semeru Eruption a Serious Threat to the Insurance Industry in Indonesia?<\/span><\/h3>\n

            The eruption of Mount Semeru is not only a local disaster for the Lumajang region and its surroundings, but also has a systemic impact on the national insurance industry. In the context of November 2025, the Level IV (Alert) status and widespread ash distribution further complicate the risks. Here are the key reasons why such an eruption poses a significant threat to the insurance industry:<\/span><\/p>\n

            1. High Eruption Frequency Increases Risk Exposure<\/span><\/h4>\n

            Semeru is an active volcano with repeated eruptions. Any increase in activity means increased risk exposure for insurance companies\u2014both for direct damage, operational disruption, and the potential for massive claims.<\/span><\/p>\n

            With a consistent history of eruptions, insurance companies must prepare larger reserves (claim reserves), which can reduce profitability.<\/span><\/p>\n

            2. High Asset Value in Disaster-Prone Areas<\/span><\/h4>\n

            The area around Semeru is not only a residential area \u2014 but also an area with:<\/span><\/p>\n

              \n
            • Manufacturing plant<\/span><\/li>\n
            • Warehousing<\/span><\/li>\n
            • Inter-regional logistics routes<\/span><\/li>\n
            • Heavy equipment center and sand mining business<\/span><\/li>\n<\/ul>\n

              This means the total value of assets (Total Sum Insured) within the impact radius is enormous. When a major eruption occurs, potential losses could reach hundreds of billions of dollars in the industrial sector alone.<\/span><\/p>\n

              3. East Java Logistics Corridor is Very Vital<\/span><\/h4>\n

              The Malang\u2013Lumajang\u2013Jember route\u2014affected by volcanic ash\u2014is a crucial logistics corridor in East Java. Disruptions to this route have had a ripple effect:<\/span><\/p>\n

                \n
              • Delay in distribution of raw materials<\/span><\/li>\n
              • Damage to goods in transit<\/span><\/li>\n
              • Disruption of export shipments from ports in East Java<\/span><\/li>\n<\/ul>\n

                This triggers simultaneous Marine Cargo and Business Interruption claims. This situation is known as correlated losses, which poses a significant challenge for insurance companies.<\/span><\/p>\n

                 <\/p>\n

                4. Increase in Mass Claims at the Same Time<\/span><\/h4>\n

                Natural disasters cause a large number of claims to come in simultaneously:<\/span><\/p>\n

                  \n
                • Thousands of vehicle claims<\/span><\/li>\n
                • Dozens of factory and warehouse claims<\/span><\/li>\n
                • Heavy equipment claims from the mining sector<\/span><\/li>\n
                • Business interruption claims<\/span><\/li>\n
                • Logistics goods claims<\/span><\/li>\n<\/ul>\n

                  Insurance refers to this as a catastrophe loss event, which severely eroded the claims ratio and put pressure on the stability of insurance companies.<\/span><\/p>\n

                  Many Policies Do Not Have a \u201cVolcanic Eruption\u201d Extension<\/span><\/h3>\n

                  Not all insurance policies in Indonesia automatically cover the risk of volcanic eruptions.<\/span><\/p>\n

                  Many companies only realize when a disaster strikes that their policies do not have Earthquake, Volcanic Eruption & Tsunami Extension (EQVET).<\/span><\/p>\n

                  This is often trigger:<\/span><\/p>\n