AAUI to clarify 'all risks' clauses<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The Association of Indonesian General Insurance (AAUI) has
\npromised to hold talks with the Council of Indonesia Insurance
\n(DAI) to redefine the term 'all risks' as it relates to insurance
\npolicies in a bid to clear up widespread public confusion.<\/p>\n
\"We think that the term (all risks) need to be clarified..so
\nwe will try to discuss it with DAI's technical commission,\"
\nArizal E.R of the AAUI told The Jakarta Post on Wednesday.<\/p>\n
He said that insurance companies might not have provided a
\ndetailed explanation of the term to their customers.<\/p>\n
\"Insurance companies are not fully aware that the term might
\ncause confusion among their clients,\" he said.<\/p>\n
Arizal said it was possible the association would establish a
\nstandard definition to remove the current uncertainty.<\/p>\n
DAI top officials, meanwhile, could not be reached for
\ncomment.<\/p>\n
In the aftermath of recent floods, many insurance policy
\nholders were disappointed to learn that their 'all risks'
\npolicies did not cover flood damage.<\/p>\n
Many consumers interpret 'all risks' literally and assume such
\npolicies cover damage resulting from all types of natural
\ndisaster, including floods.<\/p>\n
At present, companies have different lists of risks covered by
\ntheir 'all risk' policies. Some companies include floods or
\nnatural disasters in their standard all risk policies. Others
\noffer extension risk coverage which can be included in a policy
\nat the client's specific request.<\/p>\n
According to DAI, however, the wording 'all risks' in an
\ninsurance policy is a technical term relating to a list of risks
\nthat are not covered in a policy.<\/p>\n
An actual 'all risks' policy highlights risks that are not
\ncovered by the policy, Arizal explained.<\/p>\n
\"Insurance companies don't use the term correctly when selling
\ntheir product to their consumers,\" he said, adding that AAUI
\nwould ask its 106 members to clarify the term.<\/p>\n
Meanwhile, PT Asuransi Bintang has begun making downpayments
\nto clients whose houses were inundated by the recent flooding.<\/p>\n
\"It is our commitment to make sure that our clients can get
\ntheir rights,\" Ariyanti Suliyanto, the company's president
\ndirector said.<\/p>\n
As of Feb. 13, the company had received 122 flood-related
\nclaim notifications, covering 34 factories\/businesses, 44 houses
\nand 44 vehicles.<\/p>\n
\"In two days, we will have settled all 44 claims for houses
\nwith total downpayments of Rp 1 billion (about US$96,618),\"
\nAriyanti added.<\/p>\n
\"The remaining payments will be calculated once we get the
\nfinal settlement,\" she said.<\/p>\n
Ariyanti added that the firm's reinsurance companies had
\nprovided funds to cover flood-related claims.<\/p>\n
\"We won't have any difficulties with our cash flows,\" she
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/aaui-to-clarify-all-risks-clauses-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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