Court rejects bankruptcy petition against Manulife
JAKARTA (JP): The Central Jakarta Commercial Court dismissed on Thursday a bankruptcy petition filed against joint venture insurance company PT Asuransi Jiwa Manulife Indonesia (AJMI), a subsidiary of Canada's Manulife Financial Corp.
The Court said it had no authority to try the case due a lack of legal grounds.
"The judges are of the opinion that the plaintiff's bankruptcy petition is rather complicated and the commercial court has no authority to determine whether or not Manulife has to pay the claim ... ," head judge Hassan Basri said.
The bankruptcy petition was filed on July 25 by the beneficiary of a deceased insurance policy holder, after AJMI refused to pay an insurance claim valued at Rp 50 million (US$5,847).
The plaintiff also demanded compensation of Rp 5.1 billion, consisting of Rp 5 billion for non-material losses and Rp 50 million for the unpaid claim.
Manulife has refused to pay the claim because policyholder Taufik Effendy, who died in January 2000, did not provide the insurance company with accurate information about his health condition at the time he subscribed to the policy.
Taufik allegedly took out the policy in April 1999, but in July was diagnosed with chronic kidney failure and hypertension. He eventually died of kidney failure.
Manulife praised the court's verdict.
"This is a victory for all of our customers who completed their application forms and conducted their business honestly," AJMI president Philip Hampden-Smith said.
"It is very important that the law has changed so that it is impossible for ridiculous cases (like the Manulife case) to be brought before a bankruptcy court in an attempt to ruin companies," he said.
According to Hampden-Smith, the whole case was "just an attempt to push something through that is illogical".
Meanwhile, the plaintiff's lawyer was visibly disappointed with the verdict, but vowed to fight on to ensure that his client "gets what is rightfully his".
"As long as Manulife does not honor its obligation to my client, I will take every legal step available to defend my client's rights and interests, including filing a bankruptcy petition against the company," said Yuhelson, from law firm Bramm & Associates, when asked to comment on the verdict.
He also said he would appeal to the Supreme Court.
Established in 1985, Manulife Indonesia is the fourth-largest life insurance company in the country with total assets worth Rp 2.1 trillion. A majority of the company's shares are owned by Manulife Canada, with 71 percent, while minority stakeholders include the International Financial Corporation (IFC), a subsidiary of the World Bank, which has a 9 percent shareholding.
Manulife Indonesia operates its business through a network of 72 branches in 33 cities throughout Indonesia, with the support of more than 3,000 staff.(03)