Prudential still winning customers despite court case
Prudential still winning customers despite court case
Tony Hotland, Jakarta
Insurance firm PT Prudential Life Assurance says it is still able
to win customers despite uncertainty over the company's status as
it awaits a Supreme Court decision over an earlier bankruptcy
verdict.
The firm said it had signed more than 3,000 new insurance
policies between April 30 and May 31. The solvent company was
declared bankrupt by the Jakarta Commercial Court on April 23
following a bonus dispute with a former agent. But after
widespread criticism of the ruling, the local unit of the UK-
based Prudential Plc., was allowed to reopen its offices here on
April 30.
"These new policies, signed in one month, are worth Rp 29
billion (US$3.22 million). Normally, we would sign policies worth
up to Rp 50 billion a month," Prudential financial controller
Simon Imanto said on Friday.
The number of new applicants was significantly greater than
those who were considering ending their subscriptions with
Prudential.
Prudential said about 40 policy holders were considering
ending their subscriptions, worth some Rp 1 billion.
"But we're still trying to hold them back. Even if they
continue with their decisions, we'll try to persuade them again
(not to quit) should we win our appeal," Simon said.
Prudential has appealed to the Supreme Court and is awaiting
the verdict.
Simon affirmed Prudential was committed to honoring the
policies of its subscribers. He said that the firm was completely
supported by its UK-based parent, which had assured the firm it
would shoulder all its risks and obligations.
Simon said the firm had processed all pending claims since the
bankrupt declaration.
"There are eight death claims worth Rp 1.6 billion, and around
400 other kinds of claims worth Rp 2.2 billion. We've processed
all of them," he said.
A Prudential agency manager T.J. Timotius said all the firm's
agents had been completely open with existing and new policy
holders about the situation.
"We tell them, but we managed to convince them that we're
financially sound and what happened was because of a flaw in
(Indonesia's) legal system," he said.
Prudential was declared bankrupt following a law suit by a
former Prudential agent who accused the firm of a failure to pay
him bonuses and demanded compensation of about Rp 366 billion.
The firm enjoyed a handsome profit last year, with its total
premium income reaching Rp 1 trillion, compared to Rp 477 billion
in 2002.
"Prudential is no doubt a financially solid company. We look
forward to a fair and objective decision by the Supreme Court
that would allow us to continue to grow here," Prudential
president director Charlie Oropeza said in a statement.