Liga Asuransi – Dear Reader, how are you? may your business be more successful…
This time we will discuss how to get guarantees and insurance, especially surety bonds and bank guarantees properly and correctly so that you get the best benefits and avoid problems.
Maybe you still remember that some time ago there was chaos in Indonesia that caused trillions of rupiah in losses suffered by the public because of Online Loans (PINJOL) and fraudulent investments.
In the field of insurance, especially Surety Bond and Bank Guarantee, such incidents also often occur.
Now to prevent that from happening again in the insurance and banking industry sectors, especially for Surety Bond and Bank Guarantee products, it is necessary to take precautions from now on.
As an insurance broker who focuses on the field of surety bonds and bank guarantees this time, we want to discuss the disadvantages of using the services of an unauthorised insurance broker.
If you are interested in this article, please share it with your colleagues so that they can also understand you.
You need to know that currently there is confusion, where many companies declare themselves as Surety Bond and Bank Guarantee service providers that have complete qualifications like an insurance broker company, but after checking the website of the Financial Services Authority (OJK) that the company is not registered.
Here are the promotions they often convey to the public:
- Professional
Our experienced team of experts will accompany you
- Legal Entities
Our company has a clear and trusted legal entity
- Issuing Bank
Government banks, national private banks, Regional Development banks
- Insurance Issuer
State-owned insurance companies and national private insurance companies
Before we discuss the above, let’s first have the same understanding of the meaning of insurance agents and insurance brokers according to the OJK.
Definition of insurance agent
According to the Financial Services Authority (POJK) Regulation Number 69 / POJK.05 / 2016, the definition of an insurance agent is a person who works alone or works for a business entity that acts for and on behalf of an Insurance Company or Sharia Insurance Company and meets the requirements to represent an Insurance Company or Sharia Insurance Company marketing insurance products or sharia insurance products as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance agents may only market products from one authorized insurance company registered in Indonesia.
Definition of Insurance Brokerage Company
According to the same POJK, the definition of an Insurance Broker is a company that provides services in closing insurance and handling the settlement of insurance compensation, by acting for the benefit of the insured.
The Insurance Brokerage Company provides consulting services in closing insurance or sharia insurance participation as well as handling the settlement of claims by acting for and on behalf of the policyholder / insured / participant.
The insurance brokerage company is not bound by any insurance companies.
Why Do You Need to Use an Official Insurance Broker Registered with OJK?
To answer this question, let’s use promotional materials from companies that offer surety bond and bank guarantee services that are not registered with the OJK as the subject matter.
- Professional, our experienced team of experts will accompany you
OJK has special provisions before a person can be considered an expert in the field of insurance brokers from insurance brokerage companies/insurance brokers.
In the field of insurance brokers, they must graduate from special education in the field of insurance broking organized by the official institution of the Indonesian Reinsurance Insurance Brokers Association by having certificates of AAPAI (Adjunct Insurance Broker Expert), APAI (Insurance Broker Expert) and Certified Indonesian Insurance Broker (CIIB)
In addition, they must also pass a competency exam organized by the National Professional Certification Agency (BNSP) from the Ministry of Manpower.
So, you need to make sure whether the experts who work in the company already have a professional degree registered with APARI and at the OJK.
- Legal Entities
Companies engaged in insurance agents and brokers must comply with government laws and financial services authority regulations (POJK) before being registered and obtaining an operating license from the OJK.
All supporting companies in Non-Bank Financial Institutions (NBFIs) must be registered with the OJK. If the company is not registered, then the company cannot carry out activities within the IKNB either as an agent or as an insurance broker.
If the company operates using the permission from other government agencies, the company may not carry out activities as an insurance agent or broker. Your transaction with the company is invalid.
So, make sure the agent company or insurance broker you are using has been registered with the OJK by checking directly to the OJK website or asking for a registration number from the company at the OJK.
- Insurance Issuer
Insurance issued by state-owned insurance companies and national private insurance companies
On its website and promotional materials, the company states that they cooperate with several insurance companies, and they write the names of the insurance companies.
If referring to POJK where one agent can only represent one insurance company. Only insurance brokerage firms are allowed to use many insurance companies because insurance brokers are not bound.
Because the company is not registered with the OJK as an insurance broker, by writing a list of several insurance companies on the website, they have violated the provisions of the OJK.
Some argue that they are a collection of several individual agents registered as agents in several companies.
If so, they need to mention the names of agents who are members of their team so that they are known by customers, not just the name of the insurance company.
This is also related to the provision of the government no. 15 of 2002 concerning “Know Your Customer” where the company must get to know directly with customers and insurance companies for each transaction.
- Professional Indemnity Insurance (PI)
Before we proceed, there is a question that you need to answer. Why are you asked by the employer (oblige) to submit a guarantee?
The answer is because they want certainty that you will carry out the project according to your bid, right?
Even though you and the employer may already know each other, they still ask you for guarantees, because these are the general conditions in an agreement.
Well, if you are asked by the oblige to submit a guarantee, you must also ask for collateral from all parties who work for you such as subcontractors and suppliers.
Why? The answer is the same because you want them to carry out their duties in accordance with the agreement.
Then if you use the services of an insurance broker/insurance agent, then what guarantee do you need to ask for?
Maybe you don’t need to ask for a performance bond, but you need to get a guarantee if they make mistakes and omissions that cause your guarantee not to issue or fail, then you will get a replacement guarantee from an insurance broker/insurance agent.
Authorized insurance brokers can provide this guarantee because according to POJK they are required to have Professional Indemnity Insurance (PI) insurance.
The PI insurance policy provides compensation and legal liability if the insurance broker makes a mistake that harms its customers.
So, make sure every broker, agent, or anyone who takes care of your guarantee has Professional Indemnity insurance, if necessary, ask for a copy of the insurance policy as proof. Remember this is a business, not just a good relationship.
- Company Assets
As an additional guarantee, you can also ask for financial statements from the insurance brokerage company to ensure that they have assets. If at any time they make mistakes and omissions then you are quite calm because the company has something that can be your guarantee.
Conclusion
As a customer and user of insurance services, you want to get the best guarantee and service.
In the insurance industry, there are two supporting institutions involved in marketing insurance products. There are agents representing insurance companies and insurance brokers who represent you as a customer of the insurance company.
Most people don’t fully understand insurance coverage therefore you need help from an insurance expert. The broker is an insurance expert who is on your side.
Use the services of an official insurance brokerage company so that you get the best guarantee at an efficient cost.
By using the services of an official insurance brokerage company, you will get a “guarantee” because they are covered by a Professional Indemnity insurance policy.
For all your insurance needs contact the L&G Insurance broker now!
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L&G HOTLINE 24 HOURS: 0811-8507-773 (Call – Whatsapp – SMS)
website: lngrisk.co.id
E-mail: customer.support@lngrisk.co.id
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