Not All Insurance is Guaranteed by LPS, Here is the List
The Indonesia Deposit Insurance Corporation (LPS) has explained that not all types of insurance will be covered under the upcoming Policy Guarantee Programme (PPP).
Ferdinan D. Purba, a member of the LPS Board of Commissioners for the Policy Guarantee Programme, stated that there are four types of insurance that are not guaranteed under the PPP. One of these is the investment component within Insurance Products Linked to Investment (PAYDI), commonly known as unit-linked products. However, Ferdinan emphasised that the endowment component remains within the scope of the guarantee.
He explained that the reason the investment component of unit-linked products is not guaranteed is that market risk remains the responsibility of each individual policyholder. “Therefore, what we are not including is only the investment component, because the investment element is essentially market risk; it is not appropriate to burden the guarantor with it. Market risk is the responsibility of each individual,” Ferdinan explained during a working meeting between the LPS and Commission XI of the House of Representatives (DPR RI) on Thursday (10/09/2026).
He continued by stating that all types of life insurance are guaranteed, except for the investment component of PAYDI. Ferdinan also confirmed that the coverage for life insurance reaches 100%. Overall, there are 21 types of insurance within the Indonesian insurance industry.
However, four types of insurance—namely the investment component of PAYDI, credit insurance, trade credit insurance, and suretyship/sharia suretyship—will not be covered by the PPP.
According to the LPS presentation, the following is the list of general insurance and sharia general insurance lines that are guaranteed under the PPP:
Property insurance
Motor vehicle insurance
Cargo insurance
Marine hull insurance
Marine liability insurance
Aviation hull insurance
Satellite insurance
Onshore energy insurance (oil and gas)
Offshore energy insurance (oil and gas)
Engineering insurance
Liability insurance
Personal accident insurance
Health insurance
PAYDI (endowment component)
Travel insurance
Movable all risk insurance
Miscellaneous insurance