BNI sets up insurance company

BNI sets up insurance company

JAKARTA (JP): Publicly listed Bank Negara Indonesia (BNI) has
established a life insurance company in cooperation with its
pension fund and the employees' welfare foundation of the state-
owned life insurance company Jiwasraya.

BNI announced yesterday a 60 percent stake in the insurance
company, which has a paid-in capital of Rp 15 billion (US$5
million).

Its partners, Jiwasraya's employees' foundation Yayasan
Kesejahteraan Karyawan has a 30 percent stake while BNI's pension
fund holds the remaining 10 percent in the new insurance company
called PT Asuransi BNI Jiwasraya (BNI Life).

President of the new insurance company, Ubung Bachtiar, said
BNI Life was founded in November, 1996 but was only licensed to
operate by the Ministry of Finance in July this year.

"Our main market target is BNI's debtors, BNI's subsidiaries
as well as its pension fund's subsidiaries," Bachtiar said during
a ceremony to sign a reassurance agreement between BNI Life and
PT Reasuransi International Indonesia.

He said BNI Life would cover all BNI borrowers' credit as part
of the lending contract with creditors.

"Customers need not pay the premium themselves because BNI
will do that on their behalf," he said, adding the bank increased
its lending rate to cover the premium.

He said although BNI Life had been given the right to cover
BNI clients' credit, it would provide its costumers with good
service.

Bachtiar said the company currently focused on costumers in
the greater Jakarta area because it lacked the technological
resources to set up online connections to all BNI offices
throughout the country.

"I hope next month we'll finish installing all the equipment,"
Bachtiar said, adding that about 2,500 BNI Life customers lived
in the greater Jakarta area.

Bachtiar refused to target customers, but said all BNI
debtors, which included 130,000 people, were potential clients.
(jsk)