Firms promise to cover claims of clients

Firms promise to cover claims of clients

JAKARTA (JP): Two major auto insurance firms, Garda Oto
Insurance and Sinar Mas Mobil Insurance, pledged on Friday to
cover the claims of their clients whose cars were damaged in
Wednesday's blast at the Jakarta Stock Exchange (JSX) building.

Contacted by The Jakarta Post, executives of the two companies
stated the claims would be fully covered as long as the vehicles
were insured by the owners under the Strike, Riots and Civil
Commotion (SRCC) clause.

According to the head of Garda Oto's indirect business
department, Andreas, his company has so far received 19 claims.

A staffer from Sinar Mas, who asked not to be named, said the
insurance firm had received "many claims" from its clients, and
the company was committed to paying the claims in accordance with
the clients' agreements with Sinar Mas.

"But one thing is sure, we will cover only those clients who
insured their cars under the SRCC clause with us.

"We have received many claims since yesterday," the staffer
said.

Eighty-one cars, mostly sedans and jeeps, including Mercedes
Benz, Volvos, Nissan Patrols and BMWs, were destroyed by the
blast, believed to be from a high-explosive device inside a car
parked in the underground parking of the 34-story JSX building.

Some 110 other vehicles were partly damaged. The owners of
these cars complained on Friday items such as tape decks and side
mirrors were missing from their vehicles.

Andreas of Garda Oto said paying out on these types of claims
was important for insurance firms, or they risked tarnishing
their image.

"But if the government later declares this incident an act of
terrorism, the insurance companies may have a different view,
because in the documents the vehicle insurance does not cover
damage caused by acts of terrorism," Andreas added.

He believed such bomb attacks could be seen by insurance
companies as a new business opportunity. The companies, he said,
could convince car owners to insure their vehicles at higher
terms, which would offer greater claim protection at higher fees.

"We actually have a product that covers acts of terrorism,
called the Civil Commotion, Terror and Sabotage clause. However,
people here prefer not to have it because they never saw the
importance of it.

"They may now have a different opinion," Andreas said.

At the JSX building on Friday, dozens of vehicle owners
gathered to claim their vehicles from the building. At least five
tow trucks were seen waiting to be hired to remove the damaged
vehicles from the building.

Employees from several insurance companies, along with their
companies' tow trucks, were also at the building. They took
pictures of the damaged cars before towing the vehicles out of
the parking lot, at no cost to their clients.

Those vehicle owners without insurance were visibly upset.

"I have to pay Rp 200,000 for the tow truck to get my car out
and I don't have any insurance," said a man as he examined his
damaged Honda Accord sedan, which was still covered in ash. (dja)