Manulife faces bankruptcy charges<\/p>\n
JAKARTA (JP): Canadian-based life insurance firm PT Asuransi
\nJiwa Manulife Indonesia (AJMI) is in yet another legal bout, this
\ntime fending off bankruptcy charges at Central Jakarta Commercial
\nCourt, with a verdict announced this Thursday.<\/p>\n
AJMI legal representative Hotma Sitompoel said earlier this
\nweek that a relative of one of the company's clients filed a
\nbankruptcy petition on July 25 charging AJMI with ignoring
\npayments of a life insurance policy.<\/p>\n
\"Our client, AJMI, rejects the bankruptcy petition arising
\nfrom its decision not to pay out a life insurance policy by
\nAlaydrus, who is the beneficiary of the late Taufik Effendi,\" he
\nsaid on Monday.<\/p>\n
The case centers around a Rp 50 million (about US$5,800) life
\ninsurance policy which, according to Alaydrus, should had been
\npaid out to Taufik who died last year.<\/p>\n
Hotma argued the company refused to pay the claim as Taufik
\nfailed to mention his health condition accordingly when he
\napplied for his life insurance policy.<\/p>\n
Alaydrus' lawyer Bramm & Associates, however, claimed that
\nAJMI's decision to deny the payment of the life insurance policy
\ncaused its client to suffer Rp 5.1 billion in losses.<\/p>\n
This sum took into account the unpaid policy worth Rp 50
\nmillion and a hefty Rp 5 billion in non-material losses.<\/p>\n
Bramm & Associates, in its bankruptcy petition to the court,
\ncited Alaydrus and several other policyholders as \"creditors\" of
\nAJMI.<\/p>\n
The bankruptcy law requires that a bankruptcy suit against a
\ncompany can only be brought up by at least two creditors.<\/p>\n
Hotma, however, claimed that Alaydrus had failed to obtain
\nlegal recognition at a civil court over his claim as AJMI's
\ncreditor, before filing the bankruptcy petition.<\/p>\n
Manulife, meanwhile, is not new to fighting what it once
\ncalled the \"mafia\" in the local court.<\/p>\n
Last year, an unknown company, West Samoa-based Roman Gold
\nAssets Limited, triggered a police investigation into Manulife on
\ncharges it had falsified shares in AJMI.<\/p>\n
The charges came after Manulife purchased the shares of its
\nformer joint venture partner in AJMI, the now bankrupt PT
\nDharmala Sakti Sejahtera.<\/p>\n
Manulife's struggle to defend the acquisition, gained foreign
\ninvestors' attention, making it a showcase of Indonesia's wrecked
\nlegal system.<\/p>\n
Last May, former president Abdurrahman Wahid then ordered a
\nstop to the investigation against Manulife. He said the case had
\nhurt Indonesia's image in front of foreign investors.<\/p>\n
The managing director of Manulife Indonesia, Chris Bendl,
\nsuspected the people who had disputed Manulife's purchase of
\nDharmala's stake in AJMI were now behind the current bankruptcy
\ncase.<\/p>\n
Court documents reveal Bramm & Associates share the same
\naddress as Lucas & Partners, the law office representing the
\nlittle-known West Samoan company in the previous legal bout
\nagainst Manulife.<\/p>\n
The AJMI case is the latest in a series of legal dispute
\ninvolving foreign investors.<\/p>\n
Analysts have said that strengthening the country's legal
\nsystem should be a top priority of President Megawati
\nSoekarnoputri in order to allure more investors into the ailing
\neconomy.<\/p>\n
Foreign institutional lenders including the World Bank and
\nAsian Development Bank have also called on the government to
\nboost the weak legal system.(bkm\/iwa)<\/p>",
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"sponsor": "Okusi Associates",
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