Insurance Council to set up arbitration institution
Insurance Council to set up arbitration institution
JAKARTA (JP): The Indonesian Insurance Council plans to
establish a pre-arbitration institution later this year to help
solve claims rows between insurance firms and their customers.
Syamsul Bahri Harahap, an executive of the council's legal
department, said yesterday that the country's expanding local
insurance industry would probably open up more possibilities for
claims disputes between insurers and their customers.
He explained such disputes will potentially emerge when
insurers and customers differ in interpreting their agreements,
or when insurers fail to meet all the claims put forward by their
customers.
"Such disputes have helped dent the image of our insurance
industry," Syamsul said, acknowledging the country's insurance
industry is still building up its image.
He promised that the planned pre-arbitration institution will
give services to all parties seeking insurance justice. He also
guaranteed its independence.
He said his department has so far given legal opinions to
those involved in disputes over fire and marine cargo insurance
claims.
Since 1994, the council's legal department has received over
100 disputed claims, 40 percent of which have been processed and
been given a legal opinion.
"However, our legal opinions are not binding on both parties.
If they are not satisfied with our advisory services, they can go
to BANI," Syamsul said, referring to the Indonesian National
Arbitration Agency affiliated to the Indonesian Chamber of
Commerce and Industry.
In addition to BANI, Indonesia also has the Alternative
Dispute Resolution Center, established by a number of noted local
business people in January. The center offers services to settle
civil disputes between or among companies.
Asrul Togo, another executive at the legal department, noted
that going to BANI often takes time, energy and of course money.
Therefore, the council's pre-arbitration institution is expected
to expedite the arbitration processes.
He added that the decisions to be taken by a panel of judges
at the pre-arbitration agency will be binding.
"Therefore, before we start trial sessions, we will require
both parties (insurers and customers) to sign a declaration
letter saying that they will abide by the panel's decisions,"
Togo said when announcing the convening of an insurance seminar,
to be held in Surabaya, East Java, on May 29.
The seminar, which will feature a number of local fire and
marine cargo insurance practitioners, will focus on insurance
claims. (rid)