When Big Projects Become Disasters
Several years ago, a Chinese property company began a major project in the Greater Jakarta area. They were building a luxury apartment complex with an investment of over Rp 500 billion. Everything seemed to be running smoothly—experienced contractors, modern design, and strong capital support.
However, just a matter of months later, a storm struck. An accident at the project site caused part of the basement structure to collapse. Heavy equipment was damaged, workers were injured, and construction schedules were delayed for months. Total losses were estimated at tens of billions of rupiah.
Project management panicked. They contacted an “insurance agent” they previously knew—a middleman who claimed to be able to handle all their insurance needs. However, once a claim was filed, it turned out the insurance policy didn’t cover damage caused by structural design errors. The claim was denied.
That’s when it hit them — they were never helped by a legitimate insurance broker.
Common Mistakes of Chinese Entrepreneurs in Indonesia
Many Chinese entrepreneurs have come to Indonesia with great enthusiasm, modern technology, and strong capital. Unfortunately, many don’t understand the Indonesian insurance system.
They usually believe in:
- Recommendations from private agents or local acquaintances,
- The “middleman” party who does not have official permission from the OJK,
- Or even directly purchasing a policy from an insurance company without professional assistance.
As a result, the police they get are often:
- Not commensurate with the project risk,
- Does not cover major risks such as design errors, installation errors, or contractor risks,
- And most fatally — there is no one to help when a claim occurs.
The Financial Services Authority (OJK) has anticipated this by issuing various regulations, including the POJK on insurance brokers. Its purpose is clear:
So that the broker defends the interests of the insured (customer), not the insurance company.
Unlike agents who represent the interests of insurance companies, OJK-approved brokers like L&G Insurance Broker work for their clients—ensuring the best coverage, competitive rates, and claims support through to resolution.
True Stories – Lessons from Property Projects in Karawang
Take Mr. Zhang, a Shanghai-based entrepreneur who opened an industrial estate development business in Karawang. He partnered with a local contractor and purchased construction insurance policies through an acquaintance he referred to as a “broker.”
When an incident occurred on the job—a crane fell and damaged part of the building structure—he immediately filed a claim. However, the insurance company rejected the claim, citing:
“The policy does not cover risks resulting from incorrect use of heavy equipment.”
Mr. Zhang was confused. He showed his policy, but couldn’t find a single clause that covered that condition.
It turned out that the “broker” who helped him did not have an OJK permit and only distributed policies from other parties without a thorough understanding of the project risks.
Mr. Zhang’s losses reached nearly 15 billion rupiah — without a single penny of insurance coverage.
How OJK-Registered Brokers Protect Chinese Entrepreneurs
Now imagine if from the start Mr. Zhang had used the services of L&G Insurance Broker, an official broker registered with the OJK.
The professional steps that L&G will take include:
- Comprehensive Project Risk Analysis
The L&G team will review the design, location, type of work, and potential natural and technical risks.
The result: insurance tailored to actual needs, not a generic template. - Comparing Offers from Several Leading Insurance Companies
The broker will negotiate the best premium rates with maximum coverage.
Entrepreneurs don’t have to worry — just choose the most profitable option. - Drafting Specific Additional Clauses (Endorsement)
For example: Faulty Design Clause, Automatic Reinstatement Clause, And Removal of Debris.
All of this protects the project from various risks that are often overlooked. - Claim Assistance
This is the greatest value of an official broker.
L&G will ensure that claims are submitted with complete documents, negotiations are effective, and claims payments are received as per the policy agreement.
With a professional approach like this, entrepreneurs like Mr. Zhang will not suffer huge losses due to small mistakes in choosing insurance.
Digital Era – Use a Broker Without Hassle
Many Chinese entrepreneurs think that working with insurance brokers is complicated and slow.
Even though in today’s digital era, the process withL&G Insurance Brokervery fast and transparent:
- All communication can be done via Zoom, WeChat, or WhatsApp,
- Documents are sent and approved digitally,
- The claims process is monitored in real-time through L&G’s internal systems,
- And each step is reported periodically in English or Mandarin as needed.
This way, entrepreneurs can stay focused on business — while L&G handles all insurance matters professionally.
Staff Errors Can Be Fatal
For many Chinese companies in Indonesia, insurance decisions are often entrusted to local staff or translators.
They usually don’t have in-depth experience with insurance, and simply choose based on the cheapest price.
However, a small mistake can be fatal.
If a large claim occurs and the policy does not cover the risk, then moral and legal responsibility may fall on the staff.
Therefore, the OJK firmly stipulates that only licensed insurance brokers may provide consultation and assistance services to the insured.
By choosing an official broker like L&G, staff or translators don’t need to worry about making a mistake.
Why L&G Insurance Broker is the Right Choice
L&G Insurance Broker is not a new player.
As broker officially registered with OJK, L&G has experience handling various large projects in Indonesia, including:
- Construction and property projects,
- Mining and energy industry,
- Inter-island heavy equipment delivery,
- Up to project guarantees worth billions of rupiah.
With the support of a digital system, a team of underwriting experts, and an extensive network in the national and international insurance world, L&G is ready to provide fast, transparent, and professional solutions for every Chinese entrepreneur in Indonesia.
Don’t Wait Until Claims Fail
Every year, there are many sad stories of Chinese businesspeople in Indonesia who fail to obtain insurance compensation simply because they chose unlicensed agents or intermediaries.
In fact, all of this can be avoided with a simple step: use an official insurance broker registered with the OJK.
With L&G Insurance Broker, you get:
- Maximum protection,
- Best premium rates,
- And ensure claims are resolved properly.
👉 Don’t wait until loss strikes. Contact L&G Insurance Broker now and ensure your business is properly protected.
