Life insurance and exchange rate

In July 1997, I bought a life insurance scheme from Bringin Life, called Bringin Executive, in U.S. dollars. It was understood and clearly written in the agreement that all payments of annual premiums and claims will be calculated at Bank Indonesia exchange rate at the day the transaction is made.

Due to the present crisis, I decided not to continue my insurance plan, and, therefore, I am entitled to a predetermined cash value as written in the insurance document. I followed the procedure to apply for a policy cancellation and claim for the payment of the cash value. Unfortunately, up to now, there has been no written response from Bringin. Instead, one messenger from Bringin Life's Yogyakarta branch office came to my office and told me that Bringin Life Central Office will only pay the cash value at a rate of Rp 5,000 per dollar, as decreed by what they called the Dewan Asuransi Indonesia.

Of course, I protested that their response was highly unacceptable and professionally unethical. First, they failed to keep what was legally written in the insurance policy about the exchange rate. The document is a legal document which binds the parties involved. Second, their basis for setting a Rp 5,000 exchange rate per dollar was the state budget calculation rate, which is, of course, unrealistic at this time and was changed recently to Rp 10,600 per dollar. This was also widely publicized in the mass media. Third, from a professional point of view, the company should give a written, official response to my claim, especially stating the reasons for violating their own policy statement.

I call for a more professional response from Bringin Life. An insurance company is built on customer trust, and if a company fails to keep its promise as written in its official business document, who else could we trust? To stay in business, the company should act in a business-like manner, and should treat its customers in a professional way.

SUKAMTO

Yogyakarta