AAUI Initial Estimate of Flood Claims in Sumatra Reaches IDR 567.02 Billion

JAKARTA - Chairman of the Indonesian General Insurance Association (AAUI) Budi Herawan said that according to a report from 39 member companies of the association, the initial estimate of the value of claims due to flash floods and landslides in Sumatra reached IDR 567.02 billion.

He said that the total estimate consisted of property insurance claims (tangible property) of IDR 492.53 billion and motor vehicle insurance worth IDR 74.49 billion.

"We can say that this figure is dynamic and still has the potential to grow as the reporting and survey process (claims that have been received) progresses," said Budidilansir ANTARA, Monday, December 15.

Apart from claims from the private sector and individuals, he also revealed the potential for claims from state-owned assets.

Based on informal information received from the state-owned goods (BMN) insurance consortium, for the time being, there is an exposure (potential risk) of losses on state assets of IDR 30 billion.

"But it is still exposure. There is no estimate of the provisional claim estimate, yet," he explained.

Regarding the realization of payments, Budi stated that to date, no claims have been paid because of the magnitude of technical constraints in the field.

He said that the difficult terrain conditions due to infrastructure damage, such as broken roads and airports that had been closed, made it difficult for the loss adjuster team to reach the insured object location to conduct verification.

"We just have to wait for the time of the calculations. Once the calculations can be justified, the accountability can be accounted for, we will immediately process the payment," said Budi.

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He said all association members are committed to simplifying the claim submission process, in accordance with the direction of the Financial Services Authority (OJK), in order to support the acceleration of payment of losses.

AAUI also appealed to insurance companies to strive to complete the payment process as soon as possible within 30 days after all complete claim data and the claim value agreement are reached.

"We have no intention whatsoever to slow down the process of settling claims to the public affected by the disaster. We have a great commitment to the economic wheel in disaster-affected areas so that it must continue to run," said Budi.