OJK: Mandatory Insurance Program For Vehicles Still Waiting For Government Regulations

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) said the Insurance Program, including vehicle insurance, is still waiting for the issuance of government regulations (PP) as the legal umbrella for its implementation, such as the scope and effective time of program implementation. "The TPL Mandatory Insurance Program (THIRD party LIABILITY) related to traffic accidents is intended to provide better financial protection to the community," said OJK Insurance, Guarantee and OJK Pension Fund Chief Executive Chief Executive Ogi Prastomiyono, in Semarang, Central Java, quoted from Antara, Thursday 18 July. According to Ogi, this is because the program will reduce the financial burden that vehicle owners must bear in the event of an accident, and furthermore will form better driving behavior, With increasing protection against risk, Ogi said that the community will be more protected and feel safer, as well as can encourage overall economic growth. Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UUU P2SK) regulates that the government can form a Mandatory Insurance Program as needed, including covering vehicle insurance in the form of third party legal responsibility (third party liability/TPL) related to traffic accidents, fire insurance, and home insurance to disaster risk. In its preparation, an in-preparatory study is needed.

Further provisions regarding the implementation of the Mandatory Insurance Program will be regulated by PP, after obtaining approval from the DPR. In the P2SK Law it is stated that every mandate of the P2SK Law, followed by the preparation of implementation regulations which are set no later than two years after the P2SK Law is promulgated. After the PP is issued, the OJK will draft an implementation regulation for the Mandatory Insurance Program.