Overcome Insurance Problems, Economists: Demonstration On Street Not Solving Problems

Illustration. (Photo: Doc. Antara)

JAKARTA - A number of customers on behalf of the Insurance Victims Community held a demonstration until they spent the night at the insurance company's office on Friday, January 14.

The demo action received a response from the Economist of the Center of Reform on Economics (CORE), he assessed that it would not solve the problems experienced by several unit-linked product insurance customers.

"What is clear is that going to the streets will not solve the problem," said CORE Indonesia Research Director Piter Abdullah, quoted on Wednesday 19 January.

Thus, Piter recommends that customers and insurance companies hold a dialogue bridged by a neutral party, one of which can be resolved through the Financial Services Sector Alternative Dispute Resolution Institution (LAPS SJK).

"There must be a dialogue by utilizing a neutral party to bridge the gap. Including the SJK LAPS," said Piter.

According to him, even dialogue will not be effective if both parties do not offer and accept the best solution from each other which could mean accepting losses.

"The difficulty of solving problems with unit link customers is mainly because customers clearly don't want to lose anything, they will definitely ask for their money back in full," said Piter.

LAPS SJK is an out-of-court dispute resolution institution established on September 22, 2020 by Self Regulatory Organizations (SROs) and associations in the financial services sector.

The function of the establishment of this institution is to facilitate the community in seeking dispute resolution in the financial services sector.

Disputes that can be resolved through the SJK LAPS are civil disputes, relating to the placement of consumer funds in financial service institutions and the use of products and services in financial service institutions.