London insurers add Indonesia to war risks

London insurers add Indonesia to war risks

LONDON (Reuters): A decision by London-based insurers to raise the cost of some insurance in Indonesia due to recent riots and demonstrations is not expected to have a big impact on business in the region, market sources said yesterday.

"These are not huge increases. These are just recommended additional premiums and they're there to flag up to underwriters the social unrest in the area," one London insurance source told Reuters.

The London War Risks Rating Committee, a joint London insurance market body, issued the new guidelines on marine, aviation and cargo business in Indonesia because of growing civil unrest in the country.

Riot police earlier yesterday used tear gas and rubber bullets to break up a protest of up to 15,000 demonstrators outside a south Jakarta university campus, witnesses said.

Following months of protests by students across Indonesia, the authorities have banned demonstrations outside university campuses.

London insurances sources said there was the possibility of some additional risk to commercial goods while in transit in the country, but there was little change as regards goods at ports and airports.

The suggested changes in insurance rates also reflected the fact that Java and East Timor were considered more at risk from the latest unrest than the rest of Indonesia.