Insurance is actually a financial product that is just as important as savings to have. Its existence provides protection for needs that may come at any time in the future. However, many are hesitant to have it because they do not understand the legal basis for insurance and the mechanism for its implementation. Ignorance often limits people from doing things, including having an insurance premium to provide better coverage. The existence of insurance provides protection assistance for the life of an insured person.

For example, vehicle insurance will at least provide repair assistance for the insured due to loss of damage to his car. While a health insurance policy gives you the right for insurance to cover medical expenses. Similar to other types of insurance, the insurer has a legal responsibility to cover costs arising from these events.
Maybe you are confused, how can that be? You only pay premiums on a regular basis, which is insignificant, but then there is money that is expected or responsibility from the insurance company when you need it. Maybe you are also wondering, where is the premium money you deposited being managed?
If one day a problem occurs, for example the insurance company does not fulfill its legal responsibility to the insured party, what will happen? Are we just going to lose the expected profit without any compensation. How does the law in Indonesia protect its people from policy defaults?
There are many basic questions including the basic insurance law that applies in … Read More


