5 Selected Insurance News for November 2022

Liga Asuransi – Dear readers, how are you? We are already in the middle of the fourth quarter of 2022. Time flies so fast. Again, we present 5 selected news about the Indonesian insurance industry, we hope this news will be useful for you. If you are interested please share with your colleagues so they also understand like you.

1. AAJI Prioritizes Claim Process for Cianjur Earthquake Victims

Bisnis.com, JAKARTA — The Indonesian Life Insurance Association (AAJI) is following up on claims from earthquake victims that occurred in Cianjur and prioritizing this insurance claim to be resolved quickly. 

Chairman of the Executive Board of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon said that currently, AAJI is collecting data on the victims of the Cianjur earthquake. All members of the AAJI company are of the same mind that claims from the disaster will be prioritized. 

“We have agreed that the disaster in Cianjur must be prioritized. At the moment it has not been recorded because it is also not easy for us to come there to collect data, but we will definitely prioritize it and we will provide some convenience for the policy matters,” said Budi in a press conference, Wednesday (23/11/2022). 

As is known, an earthquake hit Cianjur Regency, West Java Province with a magnitude of 5.6 on Monday (21/11/2022). This disaster has caused many residents’ buildings to collapse. 

The epicenter was at 6.84 south latitude and 107.05 east longitude. Meanwhile, the epicenter was 10 kilometers from Cianjur Regency at 13.21 WIB and there was no potential for a tsunami based on BMKG data. 

In line with this incident, associations and a number of business actors commented that it is very important to have insurance related to natural disasters. 

The Executive Director of the Indonesian General Association (AAUI) Bern Dwiyanto revealed that the benefits of earthquake insurance are something that is highly recommended for the community. 

“Due to the location of the Indonesian archipelago which is surrounded by volcanoes and is prone to disasters, the use of earthquake insurance is highly recommended,” said Bern.

Bern continued that earthquake insurance is insurance which is an extension of other insurance that provides compensation for buildings with all kinds of contents and occupations or uses. 

In addition, explained Bern, earthquake insurance also mitigates the risk of loss/damage to property, property and/or interests insured. 

Regarding losses due to the earthquake disaster, Bern said that AAUI still needed time regarding the total insurance for the earthquake that occurred in Cianjur.

On the other hand, the Main Director of Maipark Kocu Andre Hutagalung said that the ruins of buildings that occurred in Cianjur showed how important it is for the community to be protected with earthquake insurance in order to ease the financial burden arising from damage to homes. 

In terms of premiums, Kocu explained that the range of earthquake insurance premiums differs based on the earthquake zone. He explained that the premium rate for earthquake zone 5 would be higher than for lower zones. 

“Because there is only one applicable earthquake tariff, there is no difference between one company and another,” he said.

Source:  https://finansial.bisnis.com/read/20221123/215/1601478/aaji-prioritaskan-hasil-klaim-korban-gempa-cianjur.

2. Accurate Steps to Anticipate Declined Insurance Claims

Bisnis.com, JAKARTA – Insurance policy owners must have encountered the phenomenon of rejected claims. Least, there are five main reasons why customer claims are rejected by the company. 

Previously, as a private contract between the insurance company (the insurer) and the customer (the insured), each policy had different provisions related to its protection benefits.

The insurance company has the authority to notify the customer whether the claim is rejected or only pays a portion of the proposed benefit value, based on the conditions stated in each customer’s policy. 

There are five reasons that could lead policyholders to experience rejection, including 

:   First, because the insurance policy is inactive (lapsed) due to non-payment of premiums on policies that are past due. 

•   Second, it is dishonest to reveal a history of illness when buying an insurance policy, alias having certain health conditions that pre-existed before the application of the related protection benefits (pre-existing conditions). 
•   Third, make sure when submitting a claim, you have completed all the documents requested by the insurance company because incomplete documents will cause your claim payment to be delayed. 
•   Fourth, claims are included in the exclusion, alias risks that occur are not included in the customer’s policy agreement. 
•   Finally, the filing period has expired, because each insurance claim has a certain deadline for the customer to submit his application. 

So how do you make the claim submission process run smoothly? The key word is ‘carefully review the policy documents’, whether the facts match the reasons for the refusal or not.

Some related steps that need to be taken are as follows: 

• Double-check the personal information details that were submitted when you first created the policy. Is there something missing or not in accordance with the facts. 
• It is important to get used to underlining words that state protection, either implied or expressed, for the need for further consultation with the insurer. 
• Also understand the exceptions in the insurance policy that you buy, such as pre-existing conditions, death due to participating in a crime or suicide, intentional or engineered accidents, and many others. 
• Complete the documents and information needed when submitting a claim, such as filling out the provided claim form, including the minutes of the chronology of the loss (can also be directly in the form of a hospital bill), original insurance policy, and others depending on individual needs of customers. 
• Pay attention to the claim expiration date, where the average time limit for filing a claim is between 30-60 days. 
• Routinely paying premiums so as not to experience lapsed (inactive policy) due to arrears that trigger a grace period or even the expiration of the policy.

However, if a claim rejection occurs for reasons beyond the reasons stated above, the customer is advised to immediately contact the insurance company and report a complaint via an official call center form or service. 

Related complaints will go through the insurance company’s internal review process, where the customer has the right to ask for details if necessary. 

Meanwhile, if the insurance policy is purchased through marketers, then it is better to consult with them first to then be assisted in handling it professionally. 

Or you can contact Customer Service either by coming in person or contacting via the call center. 

Apart from understanding the procedures for submitting claims that are good and correct, another thing that is no less important is that you also need to look at the credibility of service providers and insurance products that have proven experience. 

Prudential Indonesia is one of them, which for almost 27 years has been trusted to protect Indonesian families. Throughout 2021, the company has proven its commitment through the payment of claims against 2.5 million insureds who have been protected by Prudential Indonesia insurance, as well as benefits of IDR 16.6 trillion.

Source:  https://finansial.bisnis.com/read/20221123/215/1600970/cepat-jitu-anticipasi-klaim-asuransi-ditolak.

3. Jasindo Pays IDR 1.9 Trillion in Insurance Claims until September 2022

Liputan6.com, Jakarta PT Asuransi Jasa Indonesia or Asuransi Jasindo continues to improve its services to customers. One of them is regarding the speed of disbursement of insurance claims.

Jasindo Insurance Director of Finance Bayu Rafisukmawan explained, the company has disbursed funds of IDR 1.9 trillion to settle the obligation to pay various insurance claims until the third quarter of 2022.

 “Jasindo is always committed to working according to Good Corporate Governance (GCG), one of the requirements for fulfilling GCG is to resolve claims in accordance with applicable regulations,” Bayu said, Saturday (11/19/2022).

Asuransi Jasindo has carried out its commitment by paying claims on several types of insurance products it has. Every risk borne by the Company has gone through several stages of strict risk mitigation, including the use of credible reinsurance.

“In mitigating risks and paying claims, Jasindo cooperates with the best reinsurance companies in order to maintain the company’s financial condition. The accumulation of claim payments until the end of the third quarter reached IDR 1.9 trillion,” he said.

Bayu added that the settlement of this claim payment is one of Asuransi Jasindo’s main commitments in the midst of the transformation that is being carried out by the company to be able to continue to maintain good service standards for the insured.

“Paying claims in accordance with coverage is one of our commitments. The success of resolving these claims has encouraged our partners to continue to entrust their business, assets, and health insurance to Asuransi Jasindo,” he said.

Jasindo Insurance, which is part of the Indonesia Financial Group (IFG), is a general insurance company that has various insurance products such as insurance for ships, aircraft, satellites, motor vehicles, fire, transportation, travel, and other products.

“We always try to provide the best service to the insured, not only in the submission process until claims are paid but also in terms of product information that can be accessed easily through our website or contact center,” he concluded.

Source: https://www.liputan6.com/business/read/5130263/jasindo-paid-klaim-asuransi-rp-19-triliun-until-september-2022

4. Government Proposes to Be Allowed to Create a Compulsory Insurance Program in the P2SK Bill KONTAN.CO.ID

– JAKARTA. The government proposes that there be new provisions related to the compulsory insurance program in the Bill on the Strengthening and Development of the Financial Sector (RUU PPSK).

In this case, the proposed point is to allow the government to establish a mandatory insurance program as needed. Later, the government has the authority to oblige the community to participate in the program.

The Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, explained that the expected compulsory insurance is insurance that is carried out on a competitive basis. For example, the obligation of health insurance and personal accident insurance for pilgrims, which currently also has a program.

 “Unlike Jasa Raharja, which was specifically appointed to carry out passenger accident insurance, for example,” said Febrio during a Panja meeting with the Indonesian Parliament, Thursday (24/11).

According to Febri, this rule point could also have an impact on the more varied insurance products that will be circulating in the market. Thus, protection for the public is more complete.

He gave an example of a mandatory insurance program that can be implemented, such as third-party liability insurance which in several other countries is applied to people who own motorized vehicles.

“As an example, the state wants to oblige the owner of the motorized vehicle that causes the accident to also have insurance that protects other parties who become victims. We can open many of these products, but arrangements are needed for their implementation,” he said.

Therefore, Febrio emphasized that this mandatory insurance could later be carried out by any insurance company that has products that have been marketed in advance and have received approval from the Financial Services Authority (OJK). ).

“But of course, this continues to be done carefully and in stages. Of course, we don’t want to rush it,” he added.

Source: https://keuangan.kontan.co.id/news/Government-usul-diperallowed-buat-program-asuransi-wajib-di-ruu-p2sk

5. There is a Policy Guarantor in the PPSK Bill, Can Insurance Be Bailout?

Jakarta, CNBC Indonesia – Since last week, the government and Commission XI of the DPR have begun discussing the Bill on the Development and Strengthening of the Financial Sector (RUU PPSK).

In the teamwork meeting, the government and Commission XI of the DPR agreed to establish a Policy Guarantee Agency (LPP) which would be supervised and regulated by the Deposit Insurance Agency (LPS).

Member of Commission XI, who is also a member of the PPSK Bill Panja Anis Byarwati explained, LPP will be held by LPS.

The duties of the LPS in the PPSK Bill include formulating and establishing policies for guaranteeing policies and carrying out the implementation of guarantees for policies.

Nevertheless, the member of Commission XI of the PKS faction is concerned that the existence of this LPP will actually function as a bailout institution or save an insurance company that has been liquidated.

“If we pay attention to the function of the LPP, previously it was in banking and charged to the policy, so there was concern about a bailout,” explained Anis in his statement, Tuesday (22/11/2022).

From current practices, for example, where many insurance services have problems, aka ‘sick’, such as Jiwasraya and Asabri, they must be addressed first.

This means that the LPP must operate after the problem of sick insurance services has been resolved.

“LPP was not carried out before the problems at Jiwasraya, Asabri were resolved. Don’t let LPP be an authority justification for failing to oversee the insurance industry,” explained Anis.

Anis said that LPP’s function should be more directed at protecting policyholders.

Ideally, the function of guaranteeing deposits and guaranteeing policies has clear segregation, both from management, management, and recording to reporting.

So if it is carried out by one institution or institution, and there is no intended segregation, it can cause further problems and complications.

“This is because the business nature of insurance banking is different. Where banking has more certainty (Certainty), and insurance does not have certainty (Uncertainty),” explained Anis.

“We gave our views, we asked for it to be separated and outside the LPS but lost the debate,” said Anis again.

Executive Director of the Institute for Development of Economics and Finance (Indef) Tauhid Ahmad pays great attention to LPS’ work in the PPSK Bill.

According to Tauhid, LPS is only a ‘garbage basket’ from the chaotic management of insurance and cooperatives. In fact, LPS has a different content.

This is because, according to Tauhid, banking parameters are not the same as insurance services, cooperatives, and so on.

Moreover, upstream LPS is not involved in the planning mechanism, how do they implement it from each institution including building the same financial system?

“All of a sudden they are faced with having to take responsibility for these issues,” said Tauhid.

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