Policy prudence

Policy prudence

From Bisnis Indonesia

Life insurance companies issuing policies of US$500,000 and
above in Indonesia should proceed with great caution in screening
applicants.

The requirements should include a complete medical by two
doctors; a report by the insurance agent on the medical; and the
name of the applicant's usual doctor.

A thorough analysis of the above will facilitate the decision
on eligibility of the applicant.

Insurance companies generally give one of the following
replies: accepted in accordance with standard premium; accepted
with payment of additional premium; temporarily deferred
depending on the applicant's health, or rejected.

Every insurance company in Indonesia holds basically the same
standard procedure for insurance of $500,000 and up. If a life
insurance company has applied the procedure correctly and printed
the policy, it is only proper for the company to take
responsibility and pay the claim to the heirs of the insured.

The case of Ms. Marcellina Tanuhandaru (Bisnis Indonesia, July
16) is tragic for the community's trust in life insurance
companies in Indonesia. We all hope the related parties,
including the Indonesian Insurance Council, will find a just
solution for the case.

DIAUW LIEM SHIOE

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