Eka Life pays $14m in claims last year

JAKARTA (JP): PT Asuransi Jiwa Eka Life, a unit of the Sinar Mas Group, announced on Monday its payment of US$14 million in dollar-denominated policies last year.

Most policies were surrendered because policy holders wanted to benefit from the sharp rise of the U.S. dollar against the rupiah.

"Policy holders got multiplying profits from the sharp difference in exchange rates. They paid the premium at Rp 2,300 per U.S. dollar prior to the crisis, but when they surrendered their policies, they received Rp 10,000 per dollar," Eka Life said in a statement.

Despite the large amount of funds paid for the surrender of policies, Eka Life booked Rp 51 billion in net profit last year, a marked increase from only Rp 1.1 billion in 1997.

Eka Life on Monday singed a cooperation agreement with Bank Internasional Indonesia (BII), another unit of Sinar Mas.

The agreement allows Eka Life to use BII's vast network in the country to market its insurance products. It also allows Eka Life's policy holders to pay premiums via BII automated teller machines across the country.

Meanwhile, PT LG Simas Insurance, another Sinar Mas unit, officially opened on Monday a Rp 4 billion (US$444,000) insurance service center on Jl. Pangeran Jayakarta in North Jakarta.

The center provides all the firm's insurance services, ranging from claim processing to claim payments, hot lines and professional training.

"This is the first of its kind in Indonesia," Indra Wijaya, the company's vice president commissioner, said when officiating at the opening. "This service center should give quick, efficient and effective service to customers so they should not have to wait long for the services."

Phone-related services are available around-the-clock at 624- 5859.

The firm is a joint venture between LG Insurance Co Ltd of South Korea and PT Asuransi Sinar Mas Indonesia, which is wholly owned by Sinar Mas. (rid/alx)