Guaranteeing Customer Life Insurance Policy, LPS Prepares Draft Government Regulations

Secretary of the Deposit Insurance Corporation Dimas Yuliharto. (Photo: Doc. Maria Trisnawati/VOI)

BANDUNG - The Deposit Insurance Corporation (LPS) will guarantee customer insurance policies, both general and sharia insurance.

This is stated in Law (UU) Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

LPS Secretary Dimas Yuliharto revealed that LPS was preparing several things before the policy guarantor program was launched.

"In an organization, we at the LPS have appointed the executive director who will lead the program," he told reporters, Thursday, November 9.

Previously, in the press conference on the determination of the LPS Guarantee Interest Rate, the Chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadives, had appointed Jarot Marhaendro as the Executive Director of Surveillance, Data, and LPS Insurance Examination.

Dimas said that Jarot would coordinate with the Fiscal Policy Agency and the Financial Services Authority (OJK) to discuss government regulations (PP) regarding the basis for the establishment of the Policy Guarantee Institution which will be one with the LPS.

"Because the policy guarantor program is unique. If the banking guarantor program at LPS is in the LPS Law, but the program policy will be regulated in PP," continued Dimas.

Furthermore, he added, until now the policy guarantor program also does not have program details such as the amount of premium, guaranteed coverage and the type of policy that will be guaranteed so that it is necessary to coordinate a lot with the relevant ministries or institutions.

LPS, said Dimas, is also preparing a draft related to the PP.

"The part of the Executive Director that has been determined will coordinate for the making of provisions. We have all the drafts but the Ministry of Finance has not approved, we are discussing again including the health level limit that already exists, but of course we have to coordinate with the OJK," he said.

In preparing the draft, LPS also collaborates with insurance associations representing industry, OJK as supervisor and Financial System Stability Committee (KSSK) in this case the Ministry of Finance.

In addition to preparing the regulatory device, Dimas said that LPS is also preparing qualified Human Resources (HR) through a number of insurance-related trainings.

"We have prepared human resources by conducting training on insurance because banks with insurance are two very different things. We just prepare that so that when 2028 is on the road, we already have insurance experts because we train 5 years," concluded Dimas.