Manufile moves to calm policyholdres

Rendi A. Witular, The Jakarta Post, Jakarta

PT Asuransi Jiwa Manulife Indonesia (AJMI) is taking steps to calm nervous policyholders after the firm was declared bankrupt last week by the Central Jakarta Commercial Court.

AJMI spokeswoman Nelly Husnayati said that starting Monday, the firm's offices would be open to update policy holders on the situation.

"We are organizing a full team from the customer service department ... We'll even deploy our managers," she said over the weekend.

She added that the company had also opened a toll free number: 230-3223, 230-6060, and 0800-1667475.

AJMI, a local unit of Canadian insurer Manulife Financial Corp., was declared bankrupt last week after a receiver of a now defunct company, the ex-partner of Manulife in AJMI, filed a bankruptcy petition over unpaid dividends in 1999.

But the company, which has said that no dividend was declared during the year, is appealing to the Supreme Court.

Nelly said that AJMI for the time being could not pay any maturing claims until a final and binding ruling had been issued by the Supreme Court.

AJMI is the country's fourth largest insurance firm with some 400,000 policy holders.

Meanwhile, the directorate general of financial institutions at the Ministry of Finance declared AJMI solvent.

The directorate said in a press statement that AJMI was completely capable of fulfilling both its short term and long term obligations.

The risk-based capital (RBC) of AJMI is at 167.26 percent.

The directorate also appealed to the public not to panic, since the verdict would still be contested at the Supreme Court.