One insurance firm closed down, two others suspended
One insurance firm closed down, two others suspended
JAKARTA (JP): The government has closed down one insurance
company, curtailed the operation of two, sent warnings to nine
and is investigating two others.
The director for the insurance industry at the Ministry of
Finance, Sophar Lumban Toruan, disclosed here yesterday that the
finance minister revoked the license of general insurer PT
Asuransi Arindomaya with a finance minister decree dated April
25.
"The government revoked Arindomaya's license because its
shareholders had pulled out the money they had invested in the
company, so it had no more capital to back up its operation,"
Sophar told journalists.
He also revealed that the government had limited the operation
of general insurers PT Maskapai Asuransi Teladan and PT Maskapai
Asuransi Timur Besar because their capital was inadequate.
"They are now banned from closing new policies but still
allowed to continue serving existing customers... If they cannot
get more capital and some re-insurance back-up, we will revoke
their licenses, oh yes.." Sophar said.
He said his office had investigated general insurer PT
Asuransi Inda Tamporok and life insurer PT Asuransi Indatamporok
Life because "we are suspicious of their unusual first quarter
financial reports."
He added that his office had sent warnings to six general
insurers and three life insurers for their failure to submit
their first quarter financial reports on time.
The general insurers are PT Asuransi Grasia Unisarana, PT
Maskapai Asuransi Jasa Tania, PT Asuransi Nugra Pacific,
Periscope Insurance Coy, PT Asuransi Sari Sumber Agung and PT
Arthagraha General Insurance.
The life insurers in question are PT Asuransi Jiwa Binasakti
Sejaktera, PT Asuransi Jiwa Mukjizat Utama and PT Asuransi
Winterthur Life Indonesia.
"There must be something wrong in the management of those
insurers... Since they failed to meet their obligations to the
government, I suspect that they might have abused the trust of
their customers," Sophar said.
He noted that there are still many insurance companies trying
to stall customers by putting off or even refusing claim
payments.
"Those who get such treatment from insurers: please report it
to our office. We will help solve the problem and, if necessary,
punish the errant insurers," He said.
He also warned the public over the valuation of claims by
adjusting companies.
"Adjusters now still have no working standards and, therefore,
the result from one adjuster to another can vary. So be careful
with adjusters. Don't just believe their estimates," Sophar
warned.
Competition
Sophar also called on independent parties to rate local
insurance firms so that the latter can become more vigorous in
competition.
"Such rating by an independent agency would give people a
clearer picture of insurance firms. It would provide guidance in
choosing the right insurance firms," he said.
Currently the government, in cooperation with the Indonesian
Insurance Council, provides a list of the 20 largest local
insurance firms, in terms of their capital standing, gross
premium, net premiums and a number of ratios which represent
their solvency.
Indonesia now has 52 life insurance firms, 97 general
insurance firms and five reinsurance firms. (rid)