Insurance firm rejects compensation

Insurance firm rejects compensation

JAKARTA: PT Asuransi Republik, a member of the Beringin
insurance consortium covering workers employed overseas, has
refused to pay compensation to over 100 people repatriated in
February due to a misunderstanding with their Saudi Arabian
employer.

The consortium coordinator, Udi, told the media on Thursday
that Asuransi Republik would not reimburse repatriation costs
incurred by the workers.

"Repatriation costs are not covered by the insurance policy,"
he said.

The 1998 ministerial decree on insurance policies stipulates
that insurance for Indonesian workers abroad must cover only
death, occupational accidents and dismissal from employment.

Nur Afalah recently submitted a claim for US$129,000 to cover
the costs of bringing the workers back home.

The workers refused to work for their Saudi Arabian employer,
Gulf Catering Co., after learning they would be paid only 350
Saudi reals, rather than the 650 reals originally promised. All
had been insured at a once-for-all premium of Rp 140,000 per
person.

Meanwhile, Nur Afalah president Abuthalib Almuhdar said the
insurance company should take responsibility because the workers,
who returned home to West Nusa Tenggara in March, were placed in
an emergency situation.

"We could not force the Saudi company to pay for the workers
to come home after the dispute," he said.

Each worker paid around Rp 2.5 million to the labor exporting
company to cover recruitment fees and transport to and from Saudi
Arabia. (rms)