IDIC Will Get A New Assignment To Become An Insurance Policy Underwriter

Chairman of the LPS Board of Commissioners, Purbaya Sadewa. (Photo: Antara)

JAKARTA - The Deposit Insurance Corporation (LPS) will be tasked with organizing a policy guarantee program.

The presence of this institution is believed to be able to answer the problems that surround the life insurance industry.

The rules regarding the Policy Guarantee Institution are contained in the draft Bill on the Development and Strengthening of the Financial Sector (P2SK) or the Financial Omnibus Law Article 65 paragraph 1 in Chapter VIII concerning the Policy Guarantee Program.

The IDIC will function as a policy guarantee provider for policyholders, the insured, or participants.

LPS has several powers to run this policy guarantee program.

Starting from the determination of initial and periodic contributions from insurance companies to the terms of policy guarantee payments.

The chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, admitted that he had received the draft and was still studying it in detail.

"The House of Representatives will hand it over to the government, we will study in detail and then what kind of response we will give. But what is clear is that LPS can no longer dodge, it seems that insurance guarantees will be handed over to LPS," he said when met in Jakarta, Thursday, August 18.

According to Purbaya, the P2SK Bill will be completed by the end of 2022.

"The transition period depends, maybe 3 to 5 years. I hope it's 5 years because we know the insurance industry is still tangled and the insurance problem is also quite complex. I don't want it to collapse a month ago. We don't have enough money," he continued.

For this reason, IDIC is still studying and asking the insurance industry to prepare.

"Later, we will ask that those who can enter the LPS guarantee are those that are in accordance with the LPS assessment. The assessment is not too detailed but there is. We ask us to determine. If it is healthy, enter it," he concluded.