AXA clarifies

In response to Mr. J. W. Heilijgers' letter entitled Robbed by AXA Insurance published in The Jakarta Post on Nov. 16 regarding the increased premium of his PIMS householder policy, we, PT Asuransi AXA Indonesia, would like to clarify the matter.

1. Under our PIMS householder policy, we allow a discount on policy renewals where the client has had no claims during the previous policy period. However, if a claim occurs after the renewal notice has been sent but before the policy expires, we have the right to review the policy and increase the rate to our standard rate.

2. Under Mr. J. W. Heilijgers' PIMS householder policy which expired on Oct. 20, we applied the rate of 1.2 percent since there was no claim during the previous policy period. Our renewal notice was sent three months before the expiry date of the policy. Therefore, we applied the rate of 1.2 percent as no claim had been reported at the time the renewal notice was prepared. However, a claim was submitted before the policy expired. Based on this fact, we have to review and increase the existing rate.

However, considering our long relationship with the client, we only increased the rate to 1.3 percent (not 1.9 percent as mentioned in his previous letter) and we informed this revision of rate through the agent, Hermes.

We hope that our explanation can help clarify the situation.

ANDRIATY HARMAN

Manager, Marketing & Product Development

PT Asuransi AXA Indonesia

Jakarta