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An Insurance Agreement is a legally binding contract between an insurance company and a policyholder in Indonesia. It spells out what risks or events are covered, how much the insurer will pay, and what premiums the policyholder must pay. This core document follows rules set by Indonesia's Financial Services Authority (OJK) and the Insurance Law No. 40 of 2014.

The agreement details specific coverage terms, exclusions, claim procedures, and both parties' rights and obligations. For example, if you're insuring a home in Jakarta, it will specify exactly what damage is covered, payment schedules, and steps to file claims. Insurance companies must write these agreements in clear Bahasa Indonesia, with transparent terms as required by Indonesian consumer protection laws.

An Insurance Agreement becomes essential when you're protecting valuable assets or managing significant risks in Indonesia. You need one when buying property, starting a business, operating vehicles, or securing healthcare coverage. The agreement establishes your legal protection before any accidents or losses occur.

Many situations trigger the need for insurance agreements: taking out a mortgage (banks require property insurance), hiring employees (BPJS workplace insurance is mandatory), or launching commercial operations (liability coverage is crucial). Getting the agreement in place early protects you from financial losses and ensures compliance with OJK regulations and Indonesian insurance laws. For businesses, it's particularly important before beginning operations or signing major contracts.

• Car Insurance Agreement: Covers vehicle damage, theft, and third-party liability, mandatory for all motorists under Indonesian traffic laws
• Life Insurance Agreement: Provides death benefits and savings components, often bundled with investment products under OJK regulations
• Distribution Agreement In Bancassurance: Enables banks to sell insurance products, requiring specific OJK licenses
• Key Employee Agreement: Combines life and disability coverage for crucial staff members
• Life Settlement Agreement: Allows policyholders to sell their life insurance policies to third parties

• Insurance Companies: Licensed insurers regulated by OJK who draft and issue the agreements, set premiums, and process claims
• Policyholders: Individuals or businesses who pay premiums and receive coverage, including property owners, vehicle owners, and company directors
• Insurance Agents: Licensed professionals who explain terms, sell policies, and help clients choose appropriate coverage
• Legal Teams: Corporate lawyers and compliance officers who review and customize Insurance Agreements to meet regulatory requirements
• Beneficiaries: Named individuals or entities entitled to receive insurance benefits when claims are approved
• Regulatory Bodies: OJK officials who oversee insurance operations and enforce compliance with Indonesian insurance laws

• Asset Details: Gather complete information about what's being insured, including values, locations, and risk factors
• Party Information: Compile accurate details of policyholder, beneficiaries, and insurer, including registration numbers and addresses
• Coverage Scope: Define exact risks covered, policy limits, and exclusions according to OJK guidelines
• Premium Structure: Calculate and document payment schedules, amounts, and methods
• Claims Process: Outline clear procedures for filing claims, required documentation, and timeframes
• Compliance Check: Verify alignment with Indonesian Insurance Law and OJK regulations
• Document Review: Use our platform to generate a compliant agreement that includes all mandatory elements

• Policy Details: Complete identification of insured assets, risks covered, and policy period as per OJK standards
• Party Information: Full legal names, addresses, and registration numbers of insurer and policyholder
• Premium Terms: Clear payment schedules, amounts, and consequences of non-payment
• Coverage Limits: Specific financial caps, deductibles, and excluded risks
• Claims Procedure: Step-by-step process for filing claims and required documentation
• Termination Rights: Conditions for policy cancellation by either party
• Dispute Resolution: Methods for handling disagreements under Indonesian law
• Language Clause: Mandatory Bahasa Indonesia version with optional English translation

People often confuse an Insurance Agreement with an Agency Agreement in the Indonesian insurance sector. While both documents play crucial roles in the insurance industry, they serve distinctly different purposes and involve different relationships.

• Primary Purpose: Insurance Agreements establish coverage between insurers and policyholders, while Agency Agreements govern the relationship between insurance companies and their sales agents
• Legal Framework: Insurance Agreements fall under OJK's insurance regulations and Law No. 40 of 2014, while Agency Agreements are governed by commercial agency laws and specific OJK agent licensing rules
• Key Parties: Insurance Agreements involve insurers and policyholders; Agency Agreements connect insurance companies with their distribution partners
• Financial Terms: Insurance Agreements detail premiums and coverage limits; Agency Agreements focus on commission structures and sales targets
• Duration: Insurance Agreements typically have fixed policy periods, while Agency Agreements often continue until terminated by either party