Reform and insurance

Reform and insurance

I would like to record my strong support for Mr. Kustarjono
Prodjolalito's comments reported in The Jakarta Post May 27 on
behalf of the Retailers Association on the stance taken by the
Insurance Council toward recent rioting and looting in Jakarta
and elsewhere.

It is clear (as Mr. Kustarjono states) that the riots were
criminal rather than political acts, reflecting frustration at
the effects of the monetary crisis. Comments from military and
government sources confirm there is clear consensus on this.

For the Insurance Council, therefore, to seek an escape from
the many claims which have resulted on the grounds that they
amount to a popular rising (and are therefore excluded from
insurance policies) is a culpable position to take for an
industry which is supposed to serve the national interest.

It is an even stranger decision as most of the claims would
ultimately be paid by international (rather than domestic)
insurers who have now been given some apparent legitimacy for
denying Indonesian riot claims by the actions of the council.

I hope that in the spirit of reform there will be a positive
intervention by the new government in this matter. I believe I
also speak for many Indonesian professionals in the insurance
industry in deploring the actions of the Insurance Council and
suggest that its members reflect upon their role in this affair
and invite more able professionals to represent the industry for
the future.

SAHAT M. PANDJAITAN

Jakarta