Indonesia is a country with many citizens, and where the interest of those citizens in insurance is very low. There are many people there, especially those in the lower-middle classes, who do not have insurance.
However, the development of insurance in Indonesia has been quite good. Based on the list of insurance companies released by the Financial Services Authority (OJK) on 31 December 2015, there are 137 insurance companies that consist of:
- 76 general insurance companies;
- 50 life insurance companies;
- six reinsurance companies;
- three mandatory insurance companies; and
- two social insurance companies.
By 30 September 2017, investment reached 505.57 trillion rupiahs – a 22.42 per cent increase compared with December 2016 (which totalled 412.98 trillion rupiahs). By 30 September 2017, insurance and reinsurance premium income reached 183.45 trillion rupiahs (71.1 per cent of the projection set by the OJK for the period up to 31 December 2017).
The OJK is an independent institution, free from interference from other parties, which has the function, duty and authority to regulate, supervise, inspect and investigate, as given in Article 1 point 1 of Indonesian Act No. 21 of 2011 on the Financial Services Authority (Indonesian Act 21/2011).
When running its business, an insurance company must conform with Indonesian Act No. 40 of 2014 on Insurance (Indonesian Act 40/2014) and Financial Services Authority Regulation (OJK Regulation) No. 69/POJK05/2016 (OJK Regulation 69/2016) on the implementation of insurance companies, shariah insurance companies, reinsurance companies, and shariah reinsurance companies. Indonesian Act 40/2014 applies to all types of insurance, including reinsurance and shariah insurance.
Article 1 point 15 of Indonesian Act 40/2014 states that 'Insurance Company [refers to] general insurance companies and life insurance companies.'
As an institution with a supervisory function, the OJK has the authority to issue business licences in the financial services sector, including insurance, as given in Article 8 paragraph 1 of Indonesian Act 40/2014: 'Each party [that] shall undertake insurance business must first obtain a business licence from the Financial Services Authority.'
The OJK also has the authority to approve new insurance products to be issued in the market. Therefore, all insurance products marketed in Indonesia are in compliance with OJK standards. Indeed, Article 28 paragraph 1 of OJK Regulation No. 23/POJK05/2015 on Insurance Products and Marketing Insurance Products (OJK Regulation 23/2015) states that: 'Any new insurance product to be marketed shall be reported to OJK to obtain a letter of approval or letter of record'.
When a product has been approved by the OJK, the product has been verified by the OJK.2
i Insurance agreement and the parties
Article 246 of the Indonesian Commercial Code states:
Insurance is an agreement, in which the insuring party commits to the insured party by obtaining premium, to pay compensation for a loss due to a loss, damage or un-obtained profit, which may be suffered due to an uncertain event.
Where agreements made under Indonesian law adhere to the consensual principle, the agreement exists at the time the agreement is closed or one second after the deal is reached.
An insurance agreement expires when:3
- the time period is up;
- a journey or travel ends (for transportation);
- an event is followed by claim;
- an agreement is terminated; or
- an agreement is nullified.
Regarding the parties in the insurance agreement, the legal system in Indonesia recognises the existence of three parties: the insurer, the insured and the underwriter.
ii Legal basis of insurance law
Insurance regulations are set forth in the Indonesian Civil Code, Indonesian Commercial Code, Indonesian Act 21/2011, and OJK Regulation No 1/POJK07/2013 on Consumer Protection of the Financial Services Sector (OJK Regulation 1/2013).
Indonesian Civil Code
The Indonesian Civil Code is a legal basis for all agreements, including insurance agreements.
Article 1313 of the Indonesian Civil Code states: 'An agreement is an act pursuant to which one or more individuals bind themselves to one another.'
Article 1320 Indonesian Civil Code states:
In order to be valid, an agreement must satisfy the following four conditions:
1. there must be consent of the individuals who are bound thereby;
2. there must be capacity to enter into an obligation;
3. there must be a specific subject matter;
4. there must be a permitted cause.
Article 1338 of the Indonesian Civil Code gives that: 'All valid agreements apply to the individuals who have concluded them as law. Such agreements are irrevocable other than by mutual consent, or pursuant to reasons stipulated by the law. They must be executed in good faith.'
Indonesian Commercial Code
Articles 246–302 of the Indonesian Commercial Code regulate insurance agreements and insurance that is provided therein.
Indonesian Act 21/2011
Indonesian Act 21/2011 regulates the OJK, as an institution that has functions, duties and regulatory and supervisory powers over the financial services industry. Act 21/2011 also instructs the OJK to establish regulations on consumer protection of the financial services sector, as given in Article 31 of Indonesian Act 21/2011: 'Further provisions on the protection of consumers and society shall be regulated by OJK Regulation.'
OJK Regulation 1/2013
As stipulated in Article 31 of Indonesian Act 21/2011 (see above), OJK Regulation 1/2013 was established to regulate the rights and obligations of business actors (insurers) and consumers (the insured), and the prohibitions of business actors (insurers) in marketing their products.
The scope of consumer protection stipulated in OJK Regulation 1/2013 is set out in Article 1 point 3: 'Consumer protection is the protection of consumers with the scope of behaviour of business finance service actors.'
Furthermore, there are several principles that must be obeyed by every person who makes insurance coverage (see below).
iii Principles of insurance in Indonesia
The principles of insurance used in legal provisions in Indonesia and recognised worldwide are as follows.
Utmost good faith
Article 251 of the Indonesian Commercial Code states:
Every incorrect or false notice, or every concealment of facts known by the Insured party, even though made in good faith, the nature of which is such that the agreement concerned would not have been made, or would not have been made under the same conditions if the insuring party learnt the factual situation of all these matters, shall render the insurance concerned void.
Article 268 of the Indonesian Commercial Code states that 'insurance may cover all interests which can be denominated in terms of money, which may be subject to risk and which are not excluded by law.'
The principle of indemnity is the balance between the amount of compensation and the loss actually suffered by the insured.
Article 284 of the Indonesian Commercial Code states:
The insuring party having paid compensation for losses in respect of insured goods shall obtain all rights possessed by the insured party towards third parties in respect of such losses; and the insured party concerned shall be responsible for all actions which may potentially damage the rights of the insuring party towards such third parties.
Article 278 of the Indonesian Commercial Code states:
If in one and the same policy, even though on different days by several insuring parties an amount exceeding the actual value is covered, then the parties concerned shall jointly, proportionately to the amounts respectively signed by them, be only liable for the actual insured value.
This provision shall also be applicable if several insurances are concluded for the same goods on the same date.
III Life insurance policy
i Insurance policy
Article 255 Indonesian Commercial Code states that 'insurance must be made in writing in the form of a deed, indicating the name of policy.' Whereas, in OJK Regulation 23/2015, policy is defined in Article 1 point 6:
The insurance policy is a certificate of insurance agreement or other document equivalent to an insurance agreement, as well as other documents that constitute an inseparable part of the insurance agreement, which is made in writing and contains an agreement between the Insurer and the policyholder.
Article 11 of OJK Regulation 23/2015 regulates the standard contents of the insurance policy:
[The] insurance policy must contain [the following] at least:
a when the enactment of coverage takes place;
b description of the agreed benefits;
c method of premium payment;
d grace period for premium payment;
e the rate used for the insurance policy in foreign currency if the premium payment and the benefits are associated with the IDR currency;
f time recognised for receipt of premium payments;
g the company's policy stipulated if the premium payment made exceeds the agreed time limit;
h incontestable period;
i cash value table, for insurance products marketed by life insurance companies containing cash values;
j the calculation of dividends of an insurance policy or similar, for insurance products marketed by a life insurance company that promises dividends of an insurance policy or similar;
k a termination clause, either from the company or from the policyholder, the insured, or the participant, including the terms and clauses;
l the terms and procedures for the filing of a claim, including relevant supporting evidence and necessary [items] for the filing of a claim;
m procedures for settlement and payment of claims;
n a dispute settlement clause that includes, among other things, a settlement mechanism within the court as well as outside the court and the chosen place of dispute settlement; and
o the language referred to in the event of a dispute or difference of opinion, for the insurance policy, printed in two or more languages.
The insurance policy must include the fact that there are rights and obligations for the insurer and the insured, with regard to premiums and claims. The premium is a right for the insurer and an obligation for the insured.
Article 1 point 7 of OJK Regulation 23/2015 states:
Premium is amount of money specified by the insurer and approved by the policyholder to be paid under an insurance agreement or a set amount of money under the provisions of the laws and regulations underlying the compulsory insurance programme to benefit.
The claim is the right of the insured and an obligation for the insurer, and claims are the achievements of insurance companies. This is because the insurer pledges the insured party in the insurance policy over the payment of claims when the insured party suffered losses that are covered by the insurance policy.4
ii Life insurance
According to Mr HMN Purwosutjipto, life insurance can be interpreted as mutual agreement between the insured and the insurer where they are bound together during the course of coverage. The insured pays the premium to the insurer, to pay the amount of money that has been promised to the beneficiary, if the person whose soul is insured is dead or the agreed period of time is over.5
Article 1 point 1b of the Indonesian Act 40/2014 states:
Insurance is an agreement between two parties, namely the insurance company and the policyholder, which became the basis for the acceptance of premiums by insurance companies in exchange for provide payment based on the death of the insured or a payment based on the life of the insured with a predetermined amount of benefits and/or based on the results of fund management.
However, in Article 302 of the Indonesian Commercial Code life insurance is defined as: 'The life of a person may be insured for the benefit of the person concerned, either for a lifetime or for a period of time determined in the agreement concerned.'
From the aforementioned, we can conclude that an indemnity principle as described above is not applicable for life insurance. This is because it is difficult to determine the amount of compensation that is owed after the death of a person. Human life has not just economic value, but also other values that cannot be measured with money, such as religious and social values.6
The legal basis for the implementation of Life Insurance in Indonesia is regulated in Articles 302–308 of the Indonesian Commercial Code.
In addition to the parties mentioned above (insurers, insured and underwriters), there is an additional party in life insurance: the beneficiary.
Article 303 Indonesian Commercial Code states that: 'A concerned party may enter into insurance even without the acknowledgment or permission of the person whose life is insured.'
IV DISPUTE RESOLUTION
If a dispute claim is submitted by the insured, the first step is to refer to the insurance policy.7 One of the standard contents of an insurance policy is to contain the settlement of the dispute (choice of forum) as intended in Article 11n of OJK Regulation 23/2015: '[a] clause of dispute settlement which among others contains settlement mechanism in court and outside court and chosen place of dispute settlement'.
An insurance policy is the deed of agreement between the insured and the insurers that arranges everything, including the case of dispute and how the dispute was resolved. However, in the Indonesian Law System a pacta sunt servanda principle of civil law applies, as intended in Article 1338 paragraph 1 of the Indonesian Civil Code: 'All valid agreements apply to the individuals who have concluded them as law.' Therefore, the implementation of all insurance claims, up to dispute settlement, must follow the provisions contained in the insurance policy, Indonesian law or other regulations.
i Internal dispute resolution
Article 32 paragraph 1 of OJK Regulation 1/2013 states: 'The financial services business actor must have and implement the service mechanism and complaint settlement for the consumer.'
As intended in Article 1 point 12 of OJK Regulation No. 1/POJK07/2014 on Alternative Dispute Settlement Institutions in the Financial Services Sector (OJK Regulation 1/2014):
Complaint is the expression of consumer dissatisfaction caused by the loss or potential of financial loss to the consumer which is allegedly occurred by mistake or negligence of financial services institution in the placement of fund activity by consumer at financial service institution and/or utilisation of service and/or product of financial services institution.
However, if a complaint has been issued and one of the party is dissatisfied with the result, then the complaint turns into a dispute and the parties can resolve the dispute through external dispute resolution.
Article 1 point 13 of OJK Regulation 1/2014 states:
Dispute is a conflict between the consumer and the financial services institution in the placement of funds by the consumer at the financial services institution and/or the utilisation of services and/or products of the financial services institution after going through the process of completion of complaint by the financial services institution.
A dispute may arise between the insurer and the insured if the insured is not paid the total sum as agreed. The total sum insured is amount of money that the insurer is obliged to pay to the insured in case of their death, in accordance with the agreement contained in the insurance policy.8
If disputes regarding the total sum insured cannot be resolved by internal dispute resolution, then the insured can apply for the dispute to be resolved by external dispute resolution.
ii External dispute resolution
Indonesian Meditation and Arbitration Agency (BMAI)
The BMAI is a legal entity that takes the form of an independent and impartial union. It provides services for the settlement of claims disputes (claims for compensation or benefits) regarding insurance between members of the insurance company and the insured.9
The BMAI was established based on the Joint Decree of four Ministers:
- Coordinating Minister for Economic Affairs No. KEP45/M.EKON/07/2006;
- Governor of the Bank of Indonesia No. 8/50/KEPGBI/2006;
- Minister of Finance No. 357/KMK012/2006; and
- Minister of State-owned Enterprises No. KEP-75/MBU/2006 on the Financial Sector Policy Package set out in Jakarta on 5 July 2005.10
Although the BMAI is insurance dispute settlement institution, not all insurance disputes can be solved through the BMAI.
There are several conditions for disputes to be resolved by the BMAI:11
- disputes involving insurance claims of up to 500 million rupiahs for general insurance and 300 million rupiahs for life insurance and social insurance;
- where internal efforts have been sought by the company to resolve disputes, but have failed;
- disputes that are not related to premium pricing, related policies with interest rate and fees, actuarial standards and generally accepted provisions;
- disputes that are not related to criminal offences, with complaints filed more than six months after the verdict of rejection by the insurance company;
- disputes that have not been resolved amicably;
- disputes that are not commercial; and
- the dispute has never been brought to court or arbitration and is not being investigated by the authorities.
The insurance dispute settlement is conducted by the BMAI in three stages: the mediation stage, the adjudication stage and the arbitration stage.
The settlement of an insurance claims dispute received by the BMAI will be handled by a mediator, who will strive for the insured and the insurer to reach an agreement to settle the dispute amicably and reasonably for both parties.
Article 1 point 6 of BMAI's Decree No. 008/SK-BMAI/11.2014 on Regulation and Procedure of Mediation (BMAI's Decree 008/2014) states that '[The] mediator is a permanent employee of BMAI authorised to conduct investigation and dispute mediation process submitted by the applicant to BMAI.'
The first steps to start the mediation process are given in Article 8 of BMAI's Decree 008/2014:
The applicant must fill out and submit the dispute resolution application form (FPPS) provided by BMAI as the basis of the BMAI to investigate a dispute, in accordance with Appendix – 04 of this Decree.
Article 9 paragraph 1 of the BMAI's Decree 008/2014 states that '[The] FPPS must be filled and submitted by the applicant to BMAI within six months [once] the respondent submits the final rejection letter to the applicant and [if] during the period of six months there is no response/refutation from the applicant.'
The duration for dispute settlement through the BMAI is regulated in Article 16 of the BMAI's Decree 008/2014: 'Regarding to the purpose of the institution to resolve the dispute 'quickly', then the settlement of dispute under the mediation process must be finished within 30 days from the date of signing of the complete agreement letter of mediation.'
Article 16 paragraph 2 of BMAI Decree 008/2014 states that: 'The duration referred to [in] paragraph 1 of this Article can be extended for a maximum period of 30 days, with the consent of the parties.'
Article 17 paragraph 1 of BMAI Decree 008/2014 states:
[I]f the dispute can be completed through mediation, [the] mediator shall record in writing all the settlement requirements reached by the parties, then the parties shall sign the settlement agreement, in accordance with Appendix – 08 of this Decree.
If the dispute is resolved by mediation, then the mediator must record all the terms of the settlement reached by the parties, then the parties will sign the dispute resolution agreement. However, if the dispute cannot be resolved through mediation, then the parties may proceed to the next stage of adjudication.
Before the adjudication process begins, the parties will sign an adjudication agreement provided by the BMAI, which contains the terms and conditions of the adjudication procedure.
Article 17 paragraph 2 of BMAI Decree 008/2014:
If the dispute cannot be settled through mediation, the mediator will ask the applicant whether the applicant wishes to proceed to the adjudication and if the applicant agrees, the mediator requests the applicant to complete the dispute resolution application form to adjudication (FPPSAj) (Attachment – 09 of This Decree) to the chairman of BMAI for approval.
Article 2 paragraph 3 of BMAI Decree 008/2014:
Disputes that can be resolved through BMAI adjudication are only disputes that meet the following requirements:
a disputes in the field of insurance or related to insurance system;
b disputes concerning rights which, by law and other regulations, are fully controlled by the parties;
c disputes which, according to the laws and regulations, can be held amicably; and
d disputes that have taken the mediation of BMAI but the parties have failed to reach the settlement agreement, and have not pursued other legal remedies outside the BMAI.
In the settlement of insurance disputes the adjudication council consists of three people.
Article 1 paragraph 2 of BMAI Decree No. 009/SK-BMAI/112014 on Regulation and Procedure of Adjudication of Indonesian Meditation and Arbitration Agency (BMAI Decree 009/2014) states that the 'adjudicator is an individual who meets the requirements as an adjudicator who is appointed by the board of BMAI according to regulations and procedures of adjudication of BMAI'.
Adjudication aims to conduct a judicial review of the opinions made by the mediator on a case before the opinion or decision is submitted to the parties concerned.12
Article 20 paragraph 1 of BMAI Decree 009/2014 states: 'The adjudication investigation deadline is maximum of 60 days from the establishment of the adjudication council.'
However, with the authority of the adjudicator council and with the consent of the parties, the duration of investigation can be extended for maximum of 30 days.
Disputes that cannot be completed in mediation or adjudication and whose value of disputes exceeds the deferred range of indemnification amount shall be processed by arbitration. The arbitration award shall be final and binding on the parties and may not be requested by appeal, cassation or other legal action.
For dispute settlement through the BMAI, the mediation and adjudication are free. At the arbitration stage, the cost incurred depends on the amount of the disputed claim.
iii Financial Services Authority (OJK)
The OJK gives the opportunity for financial service consumers of the OJK to ask questions, request information, and submit complaints to its financial customer care service.13
Article 40 paragraph 1 and Article 40 paragraph 3 of OJK Regulation 1/2013:
Consumers may submit a complaint indicating a dispute between the financial services business actors and the customer to the Financial Services Authority, in this case a member of the board of commissioners in charge of education and consumer protection.
The following requirements must be met if the applicant wants to resolve the dispute through the OJK:
- the applicant must be business service personnel in the field of banking, capital market, pension fund, life insurance, financing, pawn company, or guarantee (maximum settlement of 500 million rupiahs; (Article 41a1 of OJK Regulation 1/2013);
- the financial services business actor has made a settlement effort but the consumers may not accept such settlement, or it has passed the time limit stipulated in the Financial Services Authority Rule (Article 41c of OJK Regulation 1/2013);
- the complaint being filed is not in process or has been terminated by an arbitration or judicial institution, or another mediating agency (Article 41d of OJK Regulation 1/2013);
- the complaint is private in scope (Article 41e of OJK Regulation 1/2013);
- the proposed complaint has never been facilitated by the OJK (Article 41f of OJK Regulation 1/2013); and
- the filing of the settlement of the complaint shall not exceed 60 weekdays from the date of the letter of completion of the complaint delivered by the business service to the consumers (Article 41g of OJK Regulation 1/2013).
The role of the OJK in the dispute resolution of the insurance is to helping the applicant to meet the requested party. However, the OJK is not a mediator or conciliator but a facilitator and is only allowed to facilitate and supervise the settlement process of disputes.14
Article 42 OJK Regulation 1/2013 states:
The granting of complaint settlement facility carried out by the Financial Services Authority as intended to in Article 41 is an effort to bring consumers and financial services business actors to review the issues fundamentally in order to obtain a settlement agreement.
This is because, in the end, the dispute arising between the insurer and the insured can only be solved by agreement between the insured and the insurer.
Article 45 OJK Regulation 1/2013 states the following:
(1) The implementation of the facilitation process until the signing of the deed of agreement is conducted within 30 week days since the consumer and financial services business actors signed a facilitation agreement as referred to in Article 44.
(2) The duration of the facilitation process as referred to in paragraph (1) may be extended to the next 30 (thirty) working days based on the agreement made by the consumer and financial services business actors.
If the insured is still not satisfied with the decision of the BMAI, then he or she can take the civil lawsuit to court.15 Within the Indonesian legal system, insurance disputes are breach of contract where the dispute will be resolved in a district court. Suit is filed to the court where the defendant's domicile resides (the actor sequitur forum rei principle), as given in Article 118 paragraph 1 of the Revised Indonesian Regulation (HIR):
Civil lawsuit, which scope of the district court's jurisdiction, must be filled with a letter of request signed by the plaintiff or by his/her authority according to the Article 123, to the head of the district court in the area of the defendant's residence or if not known where he/she lives, his/her actual domicile.
If the suit is complete, then the court, through its bailiff, will summon the parties and start the trial.
In Indonesian law, there are several trial stages that must be passed:
- statement of claim;
- defendant's response;
- evidence and witness;
- closing argument; and
- judicial decision.
Three judges, consisting of one chairman and two judge members are in charge of examining and deciding cases. The dispute resolution process through trials takes more time than other dispute resolution alternatives.
If the judges have decided the case and the defeated party is dissatisfied, then the party can apply a regular legal remedy (appeal, cassation or opposition) or an extraordinary legal remedy (civil request or third-party request).
v Indonesian National Arbitration Body (BANI)
Article 1 point 1 of Indonesian Act No. 30 of 1999 on Arbitration and Alternative Dispute Resolution (Indonesian Act 30/1999) states: 'Arbitration is a way of solving civil disputes outside the district courts based on the arbitration agreement made in writing by the parties to the dispute.'
The main requirement for parties to be able to use arbitration as a possible dispute settlement is an agreement between the parties in advance.16 Choosing arbitration as a choice of forum must be stated in insurance policy as given in Article 1 point 3 of Indonesian Act 30/99:
Arbitration agreement is an agreement in the form of an arbitration clause contained in a written agreement made by the parties before a dispute arises, or a separate arbitration agreement made by the parties after the dispute arises.
Article 60 Indonesian Act 30/99 states that: '[An] arbitration award shall be final and binding legal force on the parties.'
The arbitration award is independent, final and binding, so the chairman of the court is not allowed to examine the reasons or considerations of the national arbitration award.17
Regarding the execution of the arbitral award, basically the parties have to implement the decision voluntarily. Nevertheless, the arbitral award can be enforced. This may be done by such decision being submitted and registered to the district court, or by submitting the original or authentic copy of the arbitration award by the arbitrator or his or her proxy to the district court within 30 days of the arbitration award being pronounced.18 Article 61 of Indonesian Act 30/99 states:
In case the parties do not implement the arbitration award voluntarily, the award shall be implemented based on the chairman of district court order upon the request of one of the parties.
V YEAR IN REVIEW
From January to October 2017, the BMAI handled 60 disputes from hundreds of dispute reports that were entered between the insurer and the insured. The number of cases handled in 2017 was more than in the previous year, where the results of mediation and adjudication handled by the BMAI amounted to 36 cases.
The increase in cases is based on the fact that many of the insured who have an insurance dispute chose to use the path of litigation to resolve their disputes.
For several reasons, the insured are still reluctant to resolve insurance disputes using mediation and arbitration measures that are free of charge. First, BMAI regulations state that the individual applicants are required to follow by themselves all dispute resolution processes, and are not allowed to appoint any parties to represent them. Applicants may be accompanied by a companion, but the companion does not have the right to speak except with the permission of the mediator.19
Second, those with commercial insurance are generally not classified as the poor who deserve legal assistance in the view of the legal aid legislation.20
Third, the BMAI is not considered to be sufficiently independent and impartial. This can be seen from the large number of complaints that do not continue mediation.21
Referring to data released by the OJK, the value of claims and benefits paid by life insurance companies from January 2017 up to September 2017 reached 49.62 trillion rupiahs. That number is 18.2 per cent less when compared to the same period in the previous year, which reached 58.65 trillion rupiahs.22
The claim is the point when the insurer decides if there is good faith and whether the insurance company will pay compensation to the customer in the case of loss or accident. Therefore, the claim process from the start to the payment of a claim is clear proof of what the insurance company promised to its customers.23 A high claim ratio shows that the performance of Indonesian insurance companies is good. It fosters public trust for insurance. This can be proven based on a higher life insurance premium income compared to the previous year.
Based on statistics on insurance released by the OJK, life insurance premium income reached 114.8 trillion rupiahs by August 2017, an increase of 36.4 per cent compared to the same period in 2016, which totalled 84.12 trillion rupiahs.24
In addition to the good performance of the insurance industry, legal certainty will also foster the trust of the people regarding insurance. Indonesia has OJK Regulation 1/2013 as a regulation that protects the rights of the insured as consumers of the financial services sector (issued by the OJK as an institution with a supervisory function in insurance industry). Furthermore, the OJK also issued OJK Regulation 23/2015, that regulates the standard contents of the insurance policy, showing, basically, that the insurance policy is an agreement or engagement between the insurer and the insured, in which the rights and obligations of each party have been regulated.25 In the end, all actions including payment of claims (total sum insured) and dispute resolution refer to the policy.
1 Aldi Andhika Jusuf and Amir Rahmat Akbar Pane are managing partners, and Rico Ricardo is an associate, at AP Advocates. The information in this chapter was accurate as at April 2018.
2 S Edi Santosa. Penyelesaian Sengketa Klaim Tetap Mengacu Pada Ketentuan Polis. No. 323. December 2017, page 10.
3 Abdulkadir Muhammad. Hukum Asuransi Indonesia. PT. Citra Aditya Bakti. Bandung. 2002, page 133.
4 Mucharor Djalil. Dadang Sukresna 'Klaim Merupakan Prestasi Perusahaan Asuransi'. Media Asuransi.
No. 323. December 2017, page 16.
5 HMN Purwosutjipto, SH. Pengertian Pokok Hukum Dagang 'Jilid 6 Hukum Perdagangan'. Djambatan. Jakarta. 1992, page 9.
6 Aldi Andhika Jusuf. Theses: Asuransi Jiwa Unit Link Ditinjau Dari Undang-Undang Nomor 2 Tahun 1992 Tentang Usaha Perasuransian. Faculty of Law, Padjadjaran University. Bandung. 2008, page 32.
7 S Edi Santosa. Kornelius Simanjuntak 'Langkah Pertama Kembali ke Polis'. Media Asuransi. No. 323. December 2017, page 17.
8 Abdulkadir Muhammad. Hukum Asuransi Indonesia. PT Citra Aditya Bakti. Bandung. 2011, page 53.
9 Badan Mediasi Asuransi Indonesia. Peraturan dan Prosedur Ajudikasi BMAI. Badan Mediasi Asuransi. Jakarta. 2014, page 14.
10 ibid, page 13.
11 Panji Adhisetiawan. Theses: Analisa Yuridis Terhadap Penyelesaian Sengketa Klaim Asuransi Diamond Investa Antara PT Asuransi Jiwa Bakrie Dengan Tertanggung. Faculty of Law, Indonesia University. Depok. 2010, page 54.
12 Nanik Sri Handayani. Penyelesaian Klaim Pada Asuransi Kendaraan Bermotor Melalui Badan Mediasi Asuransi Indonesia. Lex Jurnalica Vol. 6 No. 3. August 2009, page 151.
13 S Edi Santosa. Sengketa Klaim Asuransi Hendaknya diselesaikan di BMAI. Media Asuransi. No. 323. December 2017, page 14.
14 Loc cit.
15 S Edi Santosa. Penyelesaian Sengketa Klaim Tetap Mengacu Pada Ketentuan Polis. Media Asuransi.
No. 323. December 2017, page 11.
16 Yusuf Wahyu Wibowo. Undergraduate Theses: Alternatif Penyelesaian Sengketa Perbankan Melalui Lembaga Alternatif Penyelesaian Perbankan Indonesia (LAPSI). Faculty of Law, Lampung University. Lampung. 2017, page 29.
17 Gatot Soemartono. Arbitrase dan Mediasi di Indonesia. PT Gramedia Pustaka Utama. Jakarta. 2006,
18 ibid. Panji Adhisetiawan, page 62.
19 Irvan Rahardjo. Industri Asuransi: Mediasi, Arbitrase & Skema Perlindungan Asuransi. Accessed from http://kalimantan.bisnis.com/read/20171219/251/719394/industri-asuransi-mediasi-arbitrase-skema-perlindungan-asuransi on 4 February 2018.
20 Loc cit.
21 Loc cit.
22 Umi Kulsum. Klaim dan Manfaat Asuransi Jiwa Susut di September. Accessed from http://keuangan.kontan.co.id/news/klaim-dan-manfaat-asuransi-jiwa-susut-di-september on 4 February 2018.
23 Mucharor Djalil. Bernadus P Wanandi 'Klaim Sebagai the Point of Truth'. Media Asuransi. No. 323. December 2017, page 21.
24 AAJI. Industri Asuransi Jiwa: Perluasan Distibusi Dongkrak Premi. Accessed at http://aaji.or.id/Berita/aaji-daily-news---27-september-2017 on 4 February 2018.
25 S Edi Santosa. Penyelesaian Sengketa Klaim Tetap Mengacu Pada Ketentuan Polis. Media Asuransi.
No. 323. December 2017, page 11.