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