Types of Insurance in Indonesia Whats that

 As one of the non-bank financial institutions, insurance is known as a fairly good investment alternative and minimizes the risk of unexpected events.

The definition of insurance according to the Financial Services Authority is an agreement between insurance service providers as insurers and people who hold policies and are known as insured who are required to pay a premium in order to provide compensation for the risk of loss, damage, death, and loss of expected profits, that might occur for unexpected events.

This term illustrates that every action taken to provide protection against risk threats. Policyholders have an obligation to pay a sum of money called a premium to the insurance company which in turn agrees to provide compensation and protection against future losses that may befall the policyholders of the insurance company.

When the policy holder or insurance participant or the insured experiences a disaster and gets the loss or damage listed in the contract, the insured has the right to file an insurance claim. The recipient of this insurance is not only the insured whose name is listed as the policy holder of the insurance company but can also be someone else who is appointed directly by the insured.

Own insurance is known in various types or types and is grouped according to focus and risk. It is this focus and risk that determines the size of uniformity in the risks borne according to the type of policy. This will be used by insurance companies to anticipate potential losses and set premium rates offered in accordance with the type of insurance each.

The following types of insurance are available in Indonesia:

1. Life Insurance

 Life Insurance - Types of Insurance in Indonesia via adriaticfs.com

This type of insurance is known to provide financial benefits to the insured for his death. Payment systems for various types of life insurance vary. There are insurance companies that provide after-death payments and others can allow the insured to claim funds before his death.

Life insurance can be purchased for self-interest and in the name of the insured alone or purchased for the benefit of a third person. Even life insurance is also known to be bought in other people's lives. As an illustration, suppose a husband can buy life insurance that will benefit him after the death of his wife. Parents can also insure themselves against the death of the child.

Also Read: Best Life Insurance, What And How to Choose it?

2. Health insurance

 Health Insurance - Types of Insurance in Indonesia via averastorycenter.org

This type of insurance is also quite well known by the people of Indonesia. Health insurance is an insurance product that handles the health problems of the insured due to an illness and covers the costs of the treatment process. Generally, the cause of illness of the insured whose costs can be borne by the insurance company is injury, disability, illness, and death by accident.

Health insurance is also known to be purchased for the benefit of the insured or the interests of third people. Private health insurance companies such as Prudential, Allianz, AIA, Cigna, and Manulife are among the big names that provide a variety of insurance products according to the needs of the Indonesian people and are widespread throughout the world.

3. Vehicle insurance

 Vehicle Insurance - Types of Insurance in Indonesia via arribadesign.co

The most popular vehicle insurance in Indonesia is a type of car insurance that focuses on the burden of injury to others or to damage to other people's vehicles caused by the insured. This insurance can also be used to pay for lost or damaged motorized vehicles.

Vehicle insurance is one of the general insurance products. This type of insurance had become a boom when the May 1998 riots occurred because the incident made people's interest in ownership of protection for private vehicles increase dramatically.

The Cermati.com financial site, has partnered with renowned insurance companies in Indonesia so that you as a customer can compare the best car insurance products with low rates. You can compare insurance premiums to protect your car at this link.

4. Home and Property ownership insurance

 Home Ownership and Property Insurance - Types of Insurance in Indonesia via infobisnisproperti.com

As an asset that is considered quite valuable, usually homeowners will protect themselves and their assets that can be in the form of a house or private property with home and property ownership insurance. 

This insurance provides protection against loss or damage that may occur to certain items belonging to the insured. This insurance also protects and provides relief when the house or other insured property experiences disasters such as fire.

5. Educational Insurance

 Educational Insurance - Types of Insurance in Indonesia via ajginternational.com

This is the most popular insurance and a favorite of policyholders. Educational insurance is the best alternative and the solution guarantees a better life especially in children's educational assets. 

Premium costs that must be paid by the insured to the insurance company vary according to the level of education that you want to get later.

Understanding the importance of using education insurance for children is now something that is of concern to parents. 

The high cost of education and other conditions that exacerbate the economy such as the weakening of our currency against the US dollar affect the cost of children's education later. 

Realizing that this would clearly burden parents, it is not uncommon for parents now to choose to have education insurance.

6. Business Insurance

 Business Insurance - Types of Insurance in Indonesia via angrypolicyholders.com

This insurance is a protection service against damage, loss, or large amounts of losses that may occur on one's business. 

This insurance provides compensation for damage caused by fire, explosion, earthquake, lightning, floods, hurricanes, rain, collisions, and riots.

Insurance companies usually offer a variety of benefits from business insurance such as protection of employees as business assets, investment and business protection, comprehensive life insurance for all employees, to health insurance protection packages for employees.

7. General Insurance

 General Insurance - Types of Insurance in Indonesia via media-juice.ne

General insurance or general insurance is protection against the risk of loss or loss of benefits and legal responsibilities to third parties. This general insurance guarantee is short-term in nature (usually around one year). General insurance can be classified into several types, including:

a) Social Insurance.

This type of insurance is insurance that must be owned by every person or resident with the aim of everyone having a pension. Premium payments are made by force, one example is by deducting a person's salary every month.

b) Voluntary Insurance

This insurance is carried out voluntarily. This type of voluntary insurance can still be divided into 2 classifications, namely Government Insurance and Commercial Insurance. Government insurance is insurance carried out by the government, while commercial insurance is insurance that is intended to provide protection to a person or family and company from risks that might arise due to unexpected events.

8. Credit Insurance

Credit Insurance - Types of Insurance in Indonesia

Credit insurance is protection against the risk of a debtor's failure to pay off credit or cash loans such as working capital, trade credit, and others. It is closely related to banking services, especially in the credit sector. 

Credit is a loan in the form of money provided by banks and financial institutions as lenders to their customers.

This credit insurance aims to protect banks or other financial institutions from the possibility of not recovering loans loaned to customers and helping to provide credit direction and security. 

Credit insurance managers in Indonesia are entrusted by the government to PT. Indonesian Credit Insurance.

9. Marine Insurance

 Marine Insurance - Types of Insurance in Indonesia 

This type of insurance specifically exists in the marine sector, whose function is to ensure transporters and cargo owners. 

Risks that might occur so that the formation of this insurance is cargo damage, damage to the ship, and hurt passengers. 

Marine insurance or naval insurance is a risk transfer both for yourself and your luggage using sea transportation services.

This insurance involves the use of shipping services in delivering goods. Some of the factors that affect sea freight insurance premiums are goods that are insured, packing goods, insured, transportation and travel risks.

10. Travel Insurance

 Travel Insurance - Types of Insurance in Indonesia via travelours.net

Overall, the function of travel insurance is not much different from the function of ordinary insurance as a form of protection for customers with a short period of time, namely as long as premium buyers travel to return home. 

The benefits and protection that will be obtained from having travel insurance include obtaining protection and coverage for accidents that afflict premium buyers, personal accident compensation, dependents on emergency medical expenses, repatriation of bodies, medical evacuations, and protection against luggage that has a risk of loss or damaged.

Also Read: 5 Reasons to Make a Travel Insurance Claim Denied

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The Importance of More Protection

Knowing the types and benefits of insurance in Indonesia is very beneficial for you in determining the right insurance. Don't hesitate to register yourself as a policy holder at your nearest insurance company. 

Unexpected events will always lurk and there are always uncertainties that need to be anticipated. Insurance is one of the alternatives that can be trusted to help overcome and bear the costs of losses for yourself, your family, or can be valuable assets that you have.