New Factory, New Problems
When Mr. Li, a businessman from Guangdong, China, decided to open an electronic components factory in the Bekasi industrial area, everything seemed perfect.
Huge investment, advanced machinery from China, and competent local workforce.
For security, he purchased industrial property insurance and freight insurance policies through an agent introduced by a local colleague.
Everything seemed easy and fast — until disaster struck.
One night, an electrical short circuit caused a fire in the raw materials warehouse area.
Smoke billowed, hundreds of millions of rupiah worth of raw materials were burned, and distribution lines were halted for two weeks.
When Mr. Li filed an insurance claim, the company refused on the grounds:
“The policy does not cover risks resulting fromelectrical short circuitwithout initial physical damage.”
It was only then that Mr. Li realized that his policy had never been reviewed by a professional broker, and the agent handling it did not even have an official OJK license.
Common Problems for Chinese Entrepreneurs in the Manufacturing and Logistics Sector
Cases like this have happened more than once or twice.
Many entrepreneurs from China come to Indonesia with large capital, butlack of understanding of the local insurance system.
Some common mistakes that often occur:
- They assume all insurance is the same. They only focus on premium prices, not the content of the coverage.
- Complete trust in a personal agent. After all, the agent legally represents the interests of the insurance company, not the client.
- Failure to understand OJK regulations, even though the OJK requires that only licensed brokers may represent the interests of insured parties.
As a result, many factories, logistics warehouses, and even shipping companies from China do not receive compensation for claims in the event of fire, heavy equipment accidents, or damage to goods in transit.
The Big Difference Between Insurance Agents and Brokers
The difference between an agent and a broker is not just a term, but a matter oflegal position and responsibilities.
Here’s a simple comparison:
| Aspect | Insurance Agent | Insurance Broker |
|---|---|---|
| Who Represents? | Insurance company | Customer (insured) |
| The main purpose | Selling certain insurance company products | Finding the best protection for customers |
| Permission from OJK | Yes, but only to sell insurance products | Yes, with the obligation to protect customer interests |
| Claims Assistance | Limited, only helps with administration | Full support until the claim is approved |
| Premium Negotiation Skills | Limited to one company | Can compare and negotiate with multiple insurances |
That is why OJK emphasizes the importance of usingofficially registered insurance broker.
In Indonesia, one of the trusted ones to handle large industrial clients isL&G Insurance Broker.
Tales from the Logistics Industry — When Cargo Doesn’t Arrive at Its Destination
Another story comes from PT Hanlong Indonesia Logistics, a Chinese company that delivers heavy equipment and mining materials from Surabaya to Kalimantan.
They have shipping contracts worth millions of US dollars.
For security, they purchased Marine Cargo Insurance through a local acquaintance who claimed to be experienced.
However, when the ship carrying their goods sank due to extreme weather, the insurance claim was rejected.
The reason?
“Police only apply to land transportation — not sea.”
In fact, all shipments are made by sea!
The losses reached almost Rp. 20 billion.
Upon investigation, it turned out that the agent handling him did not understand the details of the policy, and did not even check the type of transportation his client used.
If they had used L&G Insurance Broker from the start, this incident would not have happened.
L&G will ensure that:
- Type of policy according to mode of transportation,
- All major risks such asperils of the sea And total losscovered,
- And each claim has supporting documents that meet international standards.
How OJK-Registered Brokers Protect Your Business
L&G Insurance Brokers don’t just sell policies — they become risk advisors for clients.
For Chinese entrepreneurs in the manufacturing and logistics sectors, the approach includes:
- Risk Survey and Technical Analysis.
The team will review the manufacturing facility or distribution system to identify risks such as fire, flooding, and human error. - Recommendations for the Right Type of Insurance.
For example: Industrial All Risks (IAR), Business Interruption, Cargo Insurance, And Liability Insurance. - Premium Negotiation with Multiple Insurance Companies.
L&G works with over 30 trusted insurance companies, so you can find the best rates and coverage. - 100% Claim Assistance.
When a loss occurs, the L&G claims team will verify, prepare documents, negotiate with the loss adjuster, until the claim is paid in full.
This approach has proven successful in helping many large industrial clients save time and money.
Why Staff and Translators Must Be Careful
Many Chinese companies in Indonesia entrust insurance matters to local staff or translators.
However, without technical experience, they often choose the wrong product.
If a large claim occurs and insurance does not cover it, the company can sue them for liability.
That’s why it’s important to always involve an OJK-licensed insurance broker — so that the decisions you make are legally and financially secure.
The Digital Era — Insurance Is Now Easy, Fast, and Transparent
L&G Insurance Broker has digitally transformed.
For Chinese entrepreneurs, this means the process is much faster and more efficient:
- All communication can be via WeChat, WhatsApp, or Zoom,
- Policy and claim documents are sent electronically,
- Claim progress can be monitored in real-time,
- And the reports are available in both English and Mandarin.
With this modern system, clients don’t need to come to the office — just go online, and all insurance matters can be completed quickly and securely.
L&G Insurance Broker Reputation and Experience
L&G has been operating for over two decades, with experience handling:
- Electronics, food and steel manufacturing plants,
- Large logistics, shipping and expedition companies,
- Up to energy and infrastructure projects worth billions of rupiah.
As an official broker registered with the OJK, L&G also complies with all legal provisions, maintains transparency, and upholds high integrity.
Conclusion: Don’t Repeat the Same Mistakes
Many Chinese entrepreneurs in Indonesia have learned the hard way — losing big because they chose the wrong insurance agent.
In fact, all of this can be avoided with simple steps:
Use an official insurance broker registered with the OJK, such as L&G Insurance Broker.
With L&G, you get:
- Protection that truly suits your needs,
- Competitive premiums,
- Professional claims assistance,
- And peace of mind that your business is safe in good hands.
👉 Don’t wait until a factory burns down or a ship sinks. Contact L&G Insurance Broker now, before it’s too late.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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