Problems With Customers, 3 Insurance Companies Subject To OJK Sanctions Cannot Sell Unit Link Products Through Banks

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) prohibits banks from selling unit-linked insurance products from three insurance companies that are currently in trouble with their customers. The three insurance companies in question are AXA, AIA and Prudential.

OJK ensures that this incident will not have a profound effect on the financial services sector and hopes that the problem will be resolved soon.

The decision was conveyed by the Deputy Commissioner for Public Relations and Logistics of the OJK Anto Prabowo in a statement today. "This step is also an effort by the authorities to improve regulations regarding unit links," he said Thursday, February 3.

Anto disclosed that this was in accordance with POJK Number 1/POJK.07/2013 concerning Consumer Protection in the Financial Services Sector.

"OJK has summoned three main directors of insurance companies whose customers have reported this problem to the DPR," he said.

Prior to imposing sanctions prohibiting the sale of products through banks, the previous authorities had facilitated companies and customers both in separate and joint meetings. It is known that mediation is carried out by utilizing the Alternative Dispute Resolution Institution or LAPS (external dispute resolution).

However, the meeting point between the company and the customer has not yet reached an agreement. For this matter, OJK invites each party to take this matter to the legal realm.

"If the process of resolving customer problems with the insurance company (internal dispute resolution) does not obtain an agreement, the customer can take the court route," he said.

Anto emphasized that OJK will ensure that this issue does not interfere with public confidence in using insurance company products and services by explaining the benefits, costs and risks.