Liga Asuransi – Dear readers, how are you? May your business and family always be well. On this occasion, we are interested in reviewing the news that has just happened to the plywood factory in Jalan Soekarno Hatta, Cijagra Village, Bandung City, which has been on fire since Monday (24/10) night.
The process of extinguishing this factory takes a long time, about 20 hours. This is because the materials in this factory are flammable, such as piles of cardboard and plywood. In addition, there is limited access to the fire location, which has only one door. The fire also spread to other buildings because these buildings stored paint.
A total of 22 fire trucks were already back and forth at the location to help extinguish the fire. The plywood factory warehouse does not have a fire prevention system or a water tanker. There were indeed no fatalities and injuries in this incident, but they suffered a loss of 2 billion. So far, the exact cause of the fire is unknown.
As a senior insurance broker, we are very concerned about this incident. We will try to understand the accident from the point of view of risk management and insurance, as well as remind entrepreneurs or factory owners to pay attention to the risks that can occur at any time, with the hope of helping the parties involved in completing the investigation process appropriately so they can make wise decisions.
We hope this article is helpful for you. If you are interested, please share it with your friends, so they also understand like you.
In general, the notion of risk is an uncertain situation, and there is an element of danger, consequence, or consequence that can occur due to ongoing processes and future events.
All individual and organizational activities always contain risks because there is an element of uncertainty. This risk can occur because there needs to be more information about things that will happen in the future, be they profitable or detrimental.
As explained above, the risk is an inherent and inseparable part of our daily lives. Risk is like a spice in our lives. Sometimes it tastes spicy and also sweet. Without risk, life feels bland, but if the risk is too high, it is also scary.
Fire Insurance Overview Fire
Insurance is an insurance product that covers the risk of loss or damage to your property against the risks covered by the Indonesian Fire Insurance Standard Policy. This insurance is also known as all property risk insurance.
In addition to the guarantees stated in the Policy, the coverage can also be extended and supplemented with the following guarantees: riots, riots and strikes, business interruptions due to guaranteed and paid risks, earthquakes, and volcanic eruptions (using separate or separate policies contracts). Special conditions are secured as follows:
- Recovery or replacement
- The first loss of other contents of the building
- The first loss of removing debris
- Additional capital
Standard Fire Insurance Policy in Indonesia
Cover the primary risks caused by fire. The Indonesian Fire Standard Policy (PSAKI) is an insurance policy specially prepared by the Indonesian General Insurance Association (AAUI) for its use in Indonesia. This insurance policy is the basic standard of fire insurance policy for immovable property.
Generally, the guarantee provided by PSAKI policies is limited because there are still other risks that can cause losses. To cover other risks, the PSAKI insurance policy can be extended with other coverages, such as earthquakes, volcanic eruptions and tsunamis (EQVE), hurricanes, floods, water damage (TSFWD), riots, other people’s evil intentions, strikes, mass movements and so on.
The expanded PSAKI is also known as the Fire and Allied Perils guarantee. PSAKI insurance premium rates are determined by AAUI, as well as premium fees for the expansion of the
Risks Guaranteed by PSAKI
insurance Each insurance policy has a limit in covering each risk. Although there is the term “All risks”, it does not mean that the insurance policy covers all risks. PSAKI is categorized as named perils or certain dangers where the insurance policy only covers the risks stated in the Policy.
- The fire is caused by carelessness or error on the part of the insured or other parties, or due to other causes of fire to the extent not excluded in the Policy, and due to the spread of fire or heat arising by itself or due to the nature of the item itself.
- A short circuit (short circuit) is a fire that occurs due to fire of other objects in the vicinity provided that the fire of other things is not the result of a risk excluded by the Policy.
- Loss or damage as a result of water and/or other tools used to contain or extinguish fires
- Damage is directly caused by lightning. Especially for electrical machines, electrical or electronic equipment, and electrical installations, loss or damage is covered by this Policy if the lightning causes a fire to the object.
- Explosions originating from property insured under this Policy or other policies which run in conjunction with this Policy for the benefit of the same Insured.
- An airplane crash covered under this Policy is a physical collision between an aircraft, including a helicopter or anything that falls from it, and the property and/or interest insured or with a building containing the property and/or interest insured.
Terms of premium and or claims under this Policy are determined in a foreign currency, but the payment is made in rupiah. The price is made using the selling rate of Bank Indonesia at the time of payment.
- Loss of compensation
Right, The Insured’s right to indemnify under this Policy will be lost automatically if he does not file a claim for compensation by the provisions of article 5 paragraph 28 and does not file an objection or seek a settlement through arbitration or other legal remedies within 6 (six) months after the Insurer notifies in writing that the Insured is not entitled to compensation.
The right of the insured to claim compensation in an amount more significant than that agreed by the Insurer will be lost within three months of the Insurer notifying the settlement through arbitration or other legal remedies.
- Reinstatement of the Sum Insured
Reinstatement of the Sum insured. After a loss or damage occurs to the property and/or interest insured, the Sum Insured is reduced to the amount of the loss or damage. After recovery of the injury, the Insured may request the restoration of the Sum Insured by paying an additional premium calculated on a prorated basis for the remaining period of coverage that has not been served. However, the Insurer reserves the right to refuse such a request.
- Compensation Payment / indemnification
Payment of compensation (indemnification). The Insurer is obligated to complete the payment of compensation within 30 (thirty) days from the written agreement between the Insurer and the Insured or certainty regarding the amount of compensation to be paid.
For every loss, the Insured must first bear the amount of his own risk stated in the Policy. If coverage is under the price, then the threat is calculated after calculating the range under the price.
After payment of compensation for the property and or interest insured under this Policy, the Insurer replaces the Insured in all rights obtained against third parties in connection with the loss. The right of subrogation referred to in this paragraph applies automatically without requiring an extraordinary power of attorney from the insured. The Insured remains responsible for any actions that may harm the rights of the Insurer against the third party. Negligence of the Insured in carrying out his obligations as referred to in paragraph may eliminate or reduce the Insured’s right to obtain compensation.
- Other coverage Other
Insurance (other insurance). When the insurance is made, the Insured must notify the Insurer of additional insurance for the same property and/or interest, if any. If, after the insurance is made, the Insured then covers other insurance for the same property and/or pull, this must also be notified to the Insurer.
How to Get the Best Fire Insurance
Getting the best fire insurance takes work. One little mistake in determining the guarantee can make the insurance coverage void and the losses experienced are not replaced. You need sufficient knowledge to design an insurance policy to provide maximum protection to the insured.
To overcome all the challenges above, the presence of an insurance brokerage company is needed. Insurance brokers are experts with extensive knowledge and experience in the insurance field.
Insurance brokers must have an Insurance Broker Expert certificate followed by the Financial Services Authority (OJK) and approved by the National Professional Certification Agency (BNSP) of the Ministry of Manpower of the Republic of Indonesia.
Using the services of an insurance broker to make your insurance coverage the maximum gives you peace of mind.
One of the people’s misconceptions is that insurance premiums become expensive by using the services of an insurance broker. That is wrong. The reality is the opposite: insurance premiums’ cost is lower, and the guarantee is maximum.
So make sure each of your insurance policies is issued through the services of an insurance brokerage company.
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