Disaster struck, and hope was shattered.
Imagine you’re an entrepreneur running a batik business in Bantul. Your small factory catches fire, partly due to a short circuit in the paint shop. Although the fire isn’t large, it’s enough to shut down the factory for two weeks. You think to yourself, “Thank goodness I had fire insurance.”
But after submitting the claim, the agent only said:
“I’m sorry, sir. Your application cannot be processed due to incomplete documentation.”
Still not finished? Even though everything has been shipped, months have passed with no news. Compensation for machine repairs is also slow to arrive. Ultimately, your business has to borrow even more money just to stay afloat.
This situation is not unique to Bantul. Many businesses in Yogyakarta—from creative industries, hotels, logistics to factories—encounter the same problem: insurance claims are being rejected without cause.
Why does this kind of thing keep happening?
Key issue: Imbalance of information and interests
Most business owners buy insurance through insurance agents working for insurance companies, not agents working for clients. An insurance agent’s primary job is to sell policies, not to ensure the policies truly meet your business needs.
Therefore, many police officers are drafted without any training. The risk assessment is deep. For example:
- Even if the business is located in an area prone to flooding, the policy does not cover flood risk.
- The technical terms used by the police were never explained.
- The insured amount does not match the actual value.
All the defects only become apparent when a claim is made—and the insurance company has every reason to refuse compensation.
The cruel reality of the insurance industry
Here are some issues that Yogyakarta entrepreneurs often complain about:
- The claims process is slow and complicated. Documents are repeatedly requested, and there is no certainty about when approval will be granted.
- The exorbitant premiums were offered without any explanation. Many business owners are unaware that premiums are negotiable.
- This policy is complex and difficult to understand. The legal language and technical jargon discourage entrepreneurs from reading it.
- No one was present when the claim was made. The agent disappeared after the policy was issued. The customer was left to fend for themselves during the claim process.
These problems have led to frustration, disappointment, and distrust of the insurance industry.
But in reality, the problem is not insurance itself, but the way insurance is managed.
Good news from the Indonesian Financial Services Authority (OJK): Entrepreneurs now have their own protections.
Few people know that the Financial Services Authority (OJK) has officially confirmed that insurance brokers are customer representatives , not insurance company representatives.
It means:
An insurance agent will serve you, help you create a suitable insurance plan, negotiate the most favorable premium, and accompany you throughout the process until you receive compensation—all without charging any extra fees.
With an agent, entrepreneurs gain a stronger position in the eyes of insurance companies. You are no longer alone in dealing with technical jargon, price negotiations, and complex administrative issues.
The Real Role of an Insurance Agent: From Beginning to End
Let’s see how L&G Insurance Brokers changed the situation.
- Risk analysis before policy issuance
L&G conducts thorough risk assessments to understand your business’s characteristics—from location and asset value to potential risks. The result is an underwriting information document prepared by professionals so that insurers can accurately assess the risks and avoid simply denying a claim.
- Fairer premium negotiations
The agent is not affiliated with any insurance company. L&G can compare rates and coverage from multiple leading insurance companies and then select the most effective plan for the client. Result: More economical premiums and broader coverage.
- Claims assistance
This is the greatest added value. When a claim arises, L&G will directly intervene to provide assistance:
- Prepare complete claim documents.
- Contact the loss adjuster ,
- Negotiate with the insurance company to ensure that compensation is paid quickly and fairly.
With this kind of help, the risk of claims being rejected can be greatly reduced.
True Story: From Disappointment to Trust
Not long ago, a small fire broke out in the ink storage room of a printing business owner in Slyman. The insurance agent simply provided a claim form without any instructions. The claim was rejected on the grounds of “improper storage of flammable materials.”
That’s when he met the brokerage team. We assisted with the police review, prepared to reassess the risk assessment, and submitted technical evidence and site improvement recommendations to the insurance company.
Result: The claim was accepted and paid in full. Now, the entrepreneur entrusts all his insurance needs to L&G, no longer going through an agent.
Why can’t agents do this?
It is necessary to understand the fundamental differences between the two: agents and insurance brokers :
| aspect | Insurance Agent | Insurance broker |
|---|---|---|
| Representative | insurance company | Customers (entrepreneurs) |
| Main tasks | Selling police | Provide comprehensive consultation and protection |
| Sources of income | Sales commission | Commissions are drawn from premiums, but this does not increase the customer’s additional costs. |
| Company Selection | There is only one (where it is valid). | Many insurance companies |
| When claiming compensation | No accompaniment required | They have an obligation to assist in negotiating claims. |
In other words, a sales agent provides temporary brokerage protection .
The Digital Age: A Good Time for Transformation
With technological advancements, many Yogyakarta entrepreneurs are turning to faster, more transparent systems. Through digital platforms, such as Ligasys through L&G Insurance Brokerage, all processes can be completed online.
- Police Request and Announcement
- Monitor premiums and expiry dates
- Real-time claims report
- The technical team provides direct consultation services.
All of this requires no tedious paperwork or waiting weeks for an answer.
Yogyakarta: A business center that must rely on smart defense to thrive
As an educational, cultural, and tourist city, Yogyakarta is also developing into an emerging business hub for logistics, energy, construction, and hospitality. However, many entrepreneurs are unaware that the wrong insurance can introduce additional risks rather than provide protection.
With professional brokers like L&G Insurance Brokers, entrepreneurs now have a true partner to ensure that every Indonesian Rupiah premium truly protects their assets, business, and future.
Conclusion: Don’t wait until your claim is rejected before taking action.
If you’ve ever been disappointed by rejected claims, excessively high premiums, or overly complicated insurance services, it means you haven’t found the right partner yet.
Insurance brokers are not an extra expense, but an investment in peace of mind and security. OJK emphasizes that brokers are protectors of entrepreneurs.
Therefore, please contact L&G Insurance Brokers before purchasing or renewing insurance in Yogyakarta and the surrounding area. We are ready to be your trusted partner, providing assistance from the initial stages to claim completion—fast, fair, and without any extra fees.
L&G Insurance Brokerage – Your partner in risk management, your protector of claims.
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Don’t waste time choosing the right insurance to protect your finances and business.
L&G 24-hour hotline: 0811-8507-773 (Phone – WhatsApp – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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