OJK wants mandated insurance coverage for Indonesians: Report

Plans for vehicle insurance are in discussion.

The Financial Services Authority of Indonesia (OJK) is advocating for mandatory insurance policies for the general public, according to a Tempo report.

Ogi Prastomiyono, Chief Executive of Insurance, Financing Institutions, and Pension Fund Supervisor, has expressed that these mandated insurance policies should be introduced, particularly in situations involving large gatherings, such as football matches.

"There is no insurance for such instances since it's not mandated. As we can see from Kanjuruhan's case, there was no insurance after the investigation," Prastomiyono told Tempo.

READ MORE: OJK Pushes for Mandated Insurance Policy Implementation

"With a mandated insurance policy, the tickets could allot Rp50,000 for insurance." Prastomiyono added.

This approach is also being promoted in other sectors, including transportation, as the current insurance coverage only extends to passengers facilitated by Jasa Raharja. 

Looking ahead, there is a plan to introduce mandated insurance for vehicle insurance as well.

ALSO READ: Indonesia’s non-life insurance outlook grim: AM Best

Prastomiyono noted that if this plan is put into action, insurance companies will introduce their products or collaborate with other firms to offer such coverage. 

Previously, Mahendra Siregar, the Head of the Board of Commissioners at OJK, highlighted the low insurance penetration in Indonesia, which currently stands at just 2.75%. This means that only 7.5 million out of 275 million Indonesians have insurance coverage.