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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