What Is Lawsuit Insurance? Know Understanding, Types And Benefits

Illustration of lawsuit insurance. (Photo: Doc. IFG Life)

YOGYAKARTA What is gugat responsibility insurance (liability insurance)? This is a coverage insurance policy that must be paid by the person due to negligence from the respondent.

For example, insurance policyholders hit another person's car and the victim demanded compensation. In this case, the insurance company will compensate for losses caused by the negligence of customers or policyholders.

In more detail, here is an explanation of the lawsuit's responsibility insurance, along with its types and benefits.

Quoted from the OJK's Attitude page, Monday, March 27, 2023, gugatate responsibility insurance is a responsibility in which the person will pay compensation of a certain amount, because the responsibility is legally obliged to pay for the financial losses suffered by a person (third party) due to negligence committed by the insured.

In lawsuit responsibility insurance, the claim for compensation will only be paid by the person in charge based on a court decision and not based on a joint agreement decision between the insured and the other party.

The basis for coverage of lawsuit responsibility insurance is no longer based on caused by accident but rather on for any occultance that causes lawsuits.

Types Of Lawsuit Insurance In Indonesia

The type of lawsuit responsibility insurance is distinguished according to the risk coverage offered and also the target of its customers.

Here are three types of liability insurance or gugatate responsibility insurance available in Indonesia:

1. Individual lawsuit insurance

Individual lawsuit insurance (personal liability insurance) is an insurance product that provides compensation to the respondent for the risk of legal responsibility for other parties (third people) for injuries or property losses belonging to third parties.

2. Asuransi tangung gugat umum

General lawsuit insurance (general liability insurance) is an insurance product aimed at companies that need protection.

General liability insurance is divided into three kinds, including:

3. Asuransi tanggung gugat profesional

Insurance for professional lawsuits or professional immunity insurance is an insurance product that offers responsibility for the risk of third-party demands that suffer injuries or property losses due to negligence in the insured profession or employees.

Benefits Of Lawsuit Insurance

Here are some of the benefits that will be applied to by insurance customers with lawsuits:

1. Get compensation costs for third parties

This benefit is given by insurance companies to compensate for losses suffered by third parties, for example if they are injured in an accident or have an illness due to customer activities.

The compensation provided is a form of legal responsibility from customers whose risks are transferred to insurance.

2. Get compensation for court fees in legal cases

The lawsuit filed by a third party also raises legal costs, such as court costs and court assistance costs.

Insurance customers who want to claim this benefit should increase insurance premiums.

That's information about lawsuit insurance. Keep in mind, what is lawsuit responsibility insurance is a coverage insurance policy that must be paid by the person due to negligence from the respondent. Read on VOI.ID to get other interesting news.