Eka Life pays $14m in claims last year

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)