Risk Management

How are Risk Management and Insurance for Workers?

Liga Asuransi – Dear readers, how are you? I hope you are always in good condition and your business will progress and develop.

As we already know, in December 2022, two work accidents occurred to employees at work sites. The first case was an explosion in a coal mine recently in the high-speed rail project.

Based on BPS Labor data from January – March 2022, the number of work accidents was recorded as 61,805 cases, dominated by the young age group of 20-25.

Deputy Director of BP Jamsostek for the Jakarta Regional Office, Eko Nugriyanto, said that cases of work accidents that young people dominated signaled to them the lack of awareness in implementing work safety.

The Social Security Administration Agency (BPJS) for Employment noted that the number of work accidents in Indonesia was 234,270 cases in 2021. The number increased by 5.65% from the previous year, which amounted to 221,740 cases. If you look at the trend, Indonesia’s number of work accident cases has continued to grow in the last five years. 

According to Employment BPJS, most accidents are experienced at work sites. Most of this happens in the morning from 06.00 to 12.00. For these various work accidents, Employment BPJS has issued IDR 1.79 trillion to pay claims in 2021. This amount has increased by 14.97% compared to the previous year, which amounted to IDR 1.56 trillion.

As we have seen from the data above, it is known that work accident cases are increasing every year. For this reason, it is necessary to have risk management and guarantees that will cover if unwanted accidents occur.

To reduce the risk of work accidents in the field, employees can follow company policies and regulations and wear PPE. In addition to risk management, insurance coverage is also needed for workers.

We invite you to discuss risk management and insurance for workers in this article.

If you are interested in this article, please share it with your colleagues so they can understand it just like you.

Currently, every company has provided a unique insurance program for workers. To provide maximum protection. As employers, several companies also require that every worker has health insurance or life insurance. Especially if the worker has a relatively high level of risk.

Generally, companies only provide two insurance guarantees: Health BPJS and Employment BPJS. But apart from government insurance, many private companies offer insurance.

If you choose the type of insurance, you or your company can immediately submit or buy the best insurance product. Of course, to get insurance coverage for workers with the help of L&G Insurance Broker services.

Insurance has various benefits to protect policyholders. For that, those who don’t have insurance from the company can consider having insurance while working. Because no one knows, tomorrow there will be a risk of what will happen. You can also benefit from this insurance.

Benefits of Workers’ Insurance

  1. Comfort at Work

By having insurance at work, you will feel more comfortable. Because you can be protected from all the risks that might come your way. For example, if you work in mining and heavy equipment and involve in pretty risky activities, you will be calmer because the risks are protected through workers’ insurance.

However, not working in the heavy equipment sector does not mean you do not need health or life insurance. This is because there are several benefits that you cannot get only from government insurance, such as BPJS Kesehatan. If something unexpected happens, this possibility can be covered with insurance for workers.

  1. Minimizing Risk

Workers’ insurance will minimize risk and provide protection. The most important thing is health while working. Thus, health insurance is, of course, a right and the main thing at work. Because illness can come at any time. There’s nothing wrong with being prepared for the next day.

For that, you can get worker insurance with the type of insurance according to your needs. Apart from that, providing company worker insurance also has its advantages, namely higher employee or worker productivity. Minimizing risk, of course, also has an impact on employee productivity.

  1. As Investment and Employee Savings

Another benefit of worker insurance is the guaranteed return on investment at the end of the contract if you become an insurance policyholder. So that employees can get savings by having worker insurance. Additionally, the insurance required for the investment will also provide flexibility in the period of coverage offered. Usually, there are three choices for the period range of policy customers from 5 to 10 years.

By becoming an employee, you can choose a trusted insurance and make sure the insurance is registered with the Financial Services Authority. In some worker insurances, there are usually those who provide compensation and several guarantees for costs due to work accidents, such as medical expenses for compensation for permanent disability to compensation for death due to accidents.

If employees or workers already have different types of insurance, this certainly gives them a sense of security and is more protection.

  1. Worker Welfare Increases

Providing worker insurance to company employees, of course, will also have an impact on welfare which will increase. Workers’ insurance is very beneficial for employees, such as health insurance, which can be used when workers are sick and need medical expenses. If covered by the insurance company, then, of course, workers do not need to pay again at the hospital. So that the money can be used for other things, such as family welfare.

Increasing the welfare of workers, of course, will also encourage the quality of work of employees to be more focused. Because workers now don’t have to think about additional costs that have to come out of their wallets. In addition, employees become more loyal because their needs for security and comfort at work have been fulfilled.

Thus the benefits of worker insurance for companies are very many because it can improve the quality of work and employee loyalty. Of course, it can get workers who focus on their job more efficiently.

Types of Insurance for Workers

Besides having many benefits, worker insurance also has many types you need to know about. Because there are several types of worker insurance that employees must have. Because having insurance it means you have protection against all the risks that might be faced.

The insurance company will protect you and take over your losses if you already have insurance. Apart from Employment BPJS, which can protect workers from work accidents and old age insurance, many employees have taken insurance from private insurance companies to guarantee protection from various risks.

It doesn’t matter if you want double protection from other insurance. But before that, you have to know in advance what type of insurance you need for workers like us. The following are several types of insurance that are important for workers.

  1. Accident

Insurance Accident insurance is critical for you, especially if the insured has an accident that can result in death, disability and injury. Of course, if what happens is a permanent disability, it can burden the family for life. This is where the role of accident insurance will help families from that risk because the insurance will take over all costs.

For those who want to buy accident insurance products, you can choose the same premium value as life insurance premiums. Because the risk of an accident is as high as the risk of death. So before deciding to buy a life insurance product, compare the advantages of each of these insurances.

  1. Old age insurance or Pension Fund

You may have seen many elderly people or parents who have entered retirement age still working to make ends meet. Old age can be enjoyed happily and relaxed with family.

This old age insurance will protect you in the future, especially when you are no longer working, so to prepare for the retirement fund, you can make old age insurance early on. The reason is that not all companies have a pension program, and of course, it’s not sure that you can get a pension fund.

  1. Health

Insurance Health insurance for workers, you can prepare early because it will help ease the burden of costs you will bear. You should immediately make insurance because no one knows when this illness will come. This health insurance will be beneficial, especially if the disease is severe and requires intensive treatment, such as staying in the hospital or undergoing surgery and other medical procedures.

There are several benefits of private health insurance products not owned by government health insurance. This is because the value of BPJS benefits is minimal, so many companies continue to provide workers with insurance from commercial companies other than BPJS. So with the advantages and benefits of private insurance, work will be fully protected from various risks, and of course, you can get a double, more considerable benefit value.

  1. Life Insurance

In addition to the three types of insurance above, life insurance is also a must-have for workers. Life insurance is essential if the worker is the backbone of the family. As we know, life insurance will be given when someone dies. So, the heirs are entitled to receive insurance following the value of the premium paid before.

Several companies have provided life insurance to their workers. However, the amount the heirs will receive may be manageable, so you can buy life insurance products elsewhere.

  1. Asset Insurance

That can be done if you want to insure assets you have earned over the years of work. This asset insurance will protect assets such as houses, for example, from damage or in the event of a disaster. With asset insurance for workers, several companies compete to work with companies because only a few provide asset insurance benefits to their workers.

Not only can houses be insured if you want to insure your vehicle, of course, but you can also do that to anticipate various risks. You can do this as a first step to predicting. Of course, a vehicle is an asset that is quite important at work and concerns your daily operations.

As we all know about the increase in accident cases that have occurred in Indonesia. If an accident can happen to you anytime and you don’t have insurance coverage, who will bear all the losses? You will undoubtedly take all the risks.

One of the best ways to get insurance coverage for workers is to use the services of an experienced insurance brokerage company.

Insurance brokers will help collect data, process and make analyzes and statistics so that insurance programs can be created that can provide maximum benefits to owners and operators and bring benefits to insurance companies.

To get further information, please get in touch with L&G Insurance Broker.

Source : 


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