Life insurance and exchange rate

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