Insurance Brokers Are Entrepreneurs That Guarantee The Protection Of Policyholders: Here's The Task And How It Works

Illustration of insurance brokers (Gerd Altmann/Pixabay)

YOGYAKARTA - Insurance brokers are agencies that provide guarantees and protection for policyholders (insured customers). The existence of insurance brokers is very important for business people who have business insurance ownership because they can support customers in obtaining their rights.

What is meant by insurance is the marriage between two parties or more, with which the person in charge binds himself to the insured, by receiving insurance premiums, to provide replacement to the insured due to losses, damage or loss of expected profits, or legal responsibility to third parties who may be borne by the insured, which arise from an uncertain event, or to provide a payment based on the death or life of a person being held accountable.

This is stated in Law (UU) Number 2 of 1992 concerning Insurance Business.

From the above understanding, it can be concluded that insurance can protect various things from unexpected risks whose range causes losses.

Well, so that policyholders can claim the best insurance benefits, customers need the help of insurance brokers.

Insurance brokers Are Asuransi

"According to the Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Implementation of Insurance Company Business, Insurance Cup Company, and Insurance Losses Assessment Company, what is meant by broker or insurance brokerage company is a consulting and/or aerospace service business in closing insurance or sharia insurance and handling claims by acting for and on behalf of policyholders," quoted by VOI, Wednesday, December 14, 2022.

The work mechanism of insurance brokerage companies is closely monitored by the government so that the process takes place according to the rules.

Asuransi brokers' duties

According to Article 1 Paragraph 26 of Law Number 40 of 2014 concerning Infrastructure, the main task of insurance brokers is to provide recommendations or represent policyholders, beneficiaries, or participants in closing insurance or sharia insurance and/or settlement claims.

In more detail, here are the tasks of brokers or insurance brokerage companies:

How Insurance brokers Work

Customers or police holders who want to use the services of brokerage companies to help deal with insurance companies can do the following:

The way insurance brokers work is as follows:

That's information about insurance brokers. Because insurance brokers are agencies that provide guarantees for policyholders, their existence is very much needed so that customers can get claim benefits according to their risk profile.