OJK Needs To Study The Mandatory Vehicle Insurance Program Needed

OJK (photo: dock. Antara)

JAKARTA - The Financial Services Authority (OJK) conveyed that the implementation of the Mandatory Insurance Program, including vehicle insurance, is still waiting for the issuance of Government Regulations (PP).

Chief Executive of Insurance, Guarantee, and OJK Pension Fund Ogi Prastomiyono conveyed the Government Regulation (PP) as the legal umbrella for its implementation, such as the scope and effective time of program implementation.

Ogi explained that Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) stipulates that the Government can form an Mandatory Insurance Program according to needs.

These include vehicle insurance in the form of third party legal responsibility (THrd party liability) related to traffic accidents, fire insurance, and home insurance against disaster risk.

"In preparation, of course, an in-depth study is needed regarding the mandatory insurance program needed," he said in his statement, Thursday, July 18.

Ogi added that further provisions regarding the implementation of the Mandatory Insurance Program will be regulated with 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 implementing regulations which have been determined no later than 2 (two) years since the P2SK Law was promulgated.

According to Ogi, after the PP is issued, OJK will draw up regulations for implementing the Mandatory Insurance Program.

Ogi conveyed that the mandatory TPL insurance program related to traffic accidents is intended to provide better financial protection to the public because it will reduce the financial burden that must be borne by vehicle owners in the event of an accident, and furthermore will form better driving behavior.

"With increasing protection against risks, people will be more protected and feel safer, and can also encourage overall economic growth," he said.