OJK Speaks Out Following Constitutional Court Ruling on Insurance Approval

Financial Services Authority (Dok. Ist)

Printable.biz.id – The Financial Services Authority (Otoritas Jasa Keuangan or OJK) has spoken out following the Constitutional Court (MK) ruling, which declared Article 251 of the Indonesian Commercial Code (KUHD) conditionally unconstitutional.

With this decision, insurance companies can no longer unilaterally cancel claims. In response, Ogi Prastomiyono, the Executive Head of Insurance, Guarantee, and Pension Fund Supervision (PPDP), emphasized the importance of the article.

"We respect and will implement the Constitutional Court's decision. OJK recognizes the need to strengthen the equality between insurers and insured parties in insurance policy agreements," Ogi stated during the OJK RDKB press conference on Tuesday, January 7.

Ogi further explained that OJK will study improvement measures for the insurance policy agreement process. These measures include gathering input from associations, the industry, and the public to refine insurance policy documents.

In addition, Ogi noted that OJK would advise insurance companies to enhance their underwriting processes, ensuring that prospective policyholders provide accurate information.

"If disputes still arise, they will be resolved through mutual agreements between the insurance company and the policyholder or insured party. If necessary, disputes will be addressed through arbitration mechanisms or the courts, in accordance with applicable laws," he added.

Previously, the Constitutional Court officially granted a judicial review of Article 251 of the KUHD, filed by Maribati Duha, on Friday, January 3, 2025. The case was registered under case number 83/PUU-XXII/2024.

"The court declares that the norm in Article 251 of the Commercial Code (Staatsblad of 1847 No. 23) contradicts the 1945 Constitution of the Republic of Indonesia and lacks binding legal force as long as it is not interpreted to mean, 'including matters related to the cancellation of insurance coverage, must be based on an agreement between the insurer and the insured party through a court decision,'" said MK Chief Justice Suhartoyo, as quoted from an official statement.