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)