Mon, 21 Oct 1996

Rights commission to help settle riot insurance claims

JAKARTA (JP): The National Commission on Human Rights says it is ready to support insurance claims from traders whose property and goods were damaged or lost during the July riots.

Asmara Nababan, a member of the commission, told The Jakarta Post on Saturday that the commission will issue letters to support the claims, if that is what is needed to secure compensation.

Nababan reiterated the commission's earlier appeal to the government and insurance companies to look beyond the formalities of insurance claim procedures when dealing with the traders.

They should take humanitarian aspects into consideration, he said, noting that the claimants include small vendors.

"We appeal to their sense of solidarity," he added.

Nababan was responding to comments by Munir Sjamsoedin, the head of the Indonesian Insurance Council, published in Terbit on Friday which said the commission should issue a letter in support of the claims filed by the traders.

The letter could be used by insurance companies, if they decide to pay, to initiate court actions later against those held responsible for the riot, said Munir.

He did not reject the human rights commission's appeal to pay up, but said the council was closely watching the current trial of people blamed for the riot.

"The council is waiting for the court verdict," he said referring to the trial of over 100 people blamed for the riot which left five people dead.

Insurance companies have told traders they have a valid claim only if their policy covered what is known in the industry as RMDS, which stands for riots, malice, damages and strikes.

Most of the insurance policies held by traders did not include this clause. Many traders, particularly small vendors, did not even have insurance policies.

Shop owners have said their losses ranged between Rp 600 million ($255.000) and Rp 5 billion ($2.1 million) each. Street vendors say their losses were between Rp. 3 million and Rp. 10 million. Car showrooms, a musical instrument store, a drugstore, a supermarket, and several banks were razed during July 27 riots.

The city administration estimated that total material losses amounted to more than Rp 100 billion. The administration said 34 buildings were destroyed, 134 vehicles and seven motorcycles were burnt, and public facilities such as pay phones, traffic lights and parks were severely damaged.

Nababan said the commission is also appealing to the government to provide some compensation for street vendors because most of them did not have insurance.

Help could be provided by the Ministry of Cooperatives and Small Enterprises, the Ministry of Social Services, and the Ministry of Industry and Trade, he said.

Other organizations or bodies, including non-governmental organizations, could also lend a hand to the street vendors, he added. (16)