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An Insurance Contract is a binding agreement where an insurance company promises to compensate you for specific losses in exchange for regular premium payments. In Indonesia, these contracts are governed by the Insurance Law No. 40 of 2014 and must clearly outline covered risks, payment terms, and claim procedures.

This legal document protects both parties by spelling out their rights and obligations. Insurance companies must maintain sufficient funds to honor claims, while policyholders need to provide accurate information and pay premiums on time. Common types in Indonesia include life, health, property, and vehicle insurance contracts, each with specific coverage terms regulated by the Financial Services Authority (OJK).

Get an Insurance Contract before taking on significant financial risks or making major life decisions. Common trigger points include buying property, starting a business, purchasing vehicles, or expanding your family. In Indonesia, certain types of insurance are mandatory - like vehicle insurance for all motorists and workers' compensation coverage for businesses with employees.

The right time to secure coverage is before you need it. Indonesian law requires insurance contracts to be in place before any claims can be made, and many policies have waiting periods. For businesses, align your coverage with key milestones like new equipment purchases, office leases, or hiring waves to ensure continuous protection under OJK regulations.

• Liability Insurance Agreement: Protects businesses against third-party claims for injury or damage, essential for commercial operations in Indonesia.
• Health Insurance Agreement: Covers medical expenses and treatments, with options for individual or group coverage under BPJS regulations.
• Insurance Letter Of Agreement: A simplified contract format for basic coverage needs, often used for short-term or specific event insurance.
• Insurance Long Term Agreement: Extended coverage contracts, typically for life insurance or permanent disability protection.
• Subrogation Contract: Allows insurers to recover claim payments from third parties responsible for the loss.

• Insurance Companies: Licensed insurers in Indonesia who draft and issue policies, assess risks, and process claims under OJK supervision.
• Individual Policyholders: Citizens who purchase personal insurance contracts for life, health, property, or vehicle coverage.
• Business Owners: Companies requiring mandatory coverage like worker's compensation or seeking protection against operational risks.
• Insurance Agents: Licensed professionals who explain contract terms, help clients choose coverage, and facilitate policy purchase.
• Legal Advisors: Attorneys who review Insurance Contracts to ensure compliance with Indonesian regulations and protect client interests.
• Financial Services Authority (OJK): Regulatory body overseeing insurance operations and contract compliance.

• Risk Assessment: Document all assets, activities, or scenarios needing coverage under Indonesian law.
• Party Information: Gather complete details of policyholder and beneficiaries, including tax numbers and identity documents.
• Coverage Scope: Define specific risks, coverage limits, and exclusions aligned with OJK regulations.
• Premium Structure: Calculate and document payment terms, frequencies, and grace periods.
• Claims Process: Outline clear procedures for filing claims, required documentation, and processing timeframes.
• Regulatory Compliance: Ensure alignment with Insurance Law No. 40 of 2014 and current OJK guidelines.
• Document Generation: Use our platform to create a legally-sound contract that includes all mandatory elements.

• Party Details: Full legal names, addresses, and registration numbers of insurer and insured parties.
• Coverage Terms: Clear description of insured risks, coverage limits, and exclusions per OJK guidelines.
• Premium Structure: Payment amounts, schedules, and consequences of non-payment.
• Claims Process: Step-by-step procedure for filing claims and required documentation.
• Policy Period: Start and end dates of coverage, renewal terms, and cancellation provisions.
• Rights and Obligations: Detailed responsibilities of both insurer and policyholder.
• Dispute Resolution: Agreed methods for handling disagreements under Indonesian law.
• Signatures: Authorized signatures, company stamps, and witness attestations when required.

Insurance Contracts are often confused with an Insurance Policy, but they serve distinct purposes in Indonesian law. While both documents relate to insurance coverage, their scope and application differ significantly.

• Legal Nature: Insurance Contracts establish the binding relationship between insurer and insured, while Insurance Policies detail the specific terms of coverage.
• Timing and Duration: The Contract forms the initial agreement and remains constant, while Policies can be updated or modified annually.
• Content Focus: Contracts outline fundamental rights, obligations, and dispute resolution procedures. Policies concentrate on coverage details, exclusions, and claim processes.
• Regulatory Requirements: Under OJK regulations, Insurance Contracts must meet strict formation requirements, while Policies have more flexibility in format and content updates.
• Modification Process: Contracts require formal amendments agreed by both parties, while Policy terms can be adjusted during renewal periods.