Complete Understanding of Insurance | Download Link
Article 246 of the KUHD states:
Insurance is an agreement whereby an insurer binds himself to an insured person by receiving a premium, to provide compensation to him for a loss, damage or loss of expected profits that he may suffer due to an unspecified event.
Law No. 2 of 1992 concerning the insurance business which was promulgated on February 11, 1992 provides the definition of insurance as insurance or coverage is an agreement between two or more parties, by which the insurer binds himself to the insured, by receiving insurance premiums, to provide compensation. to the insured due to loss, damage or loss of expected profits or legal liability to third parties that may be suffered by the insured, arising from an uncertain event, or providing a payment based on the death or life of the insured person.
Insurance Basics and Elements
The basis of an insurance agreement is to avoid a risk by handing it over/burdening it to someone else. The juridical elements of an insurance are:
1. The existence of the insured (the party whose interests are insured)
2. The existence of the insurer (the insurance company that guarantees to pay compensation)
3. The existence of an insurance agreement (between the insurer and the insured)
4. There is premium payment (by the insured to the insurer)
5. There is loss, damage, or loss of profit (which is suffered by the insured).
6. The existence of an event that is not certain to occur
Insurance Principle
According to the Commercial Code, the basic principles of insurance or coverage are as follows:
1. Principle of Insurable Interest
The principle of interest that can be insured or insured is contained in the provisions of Article 250 of the KUHD which essentially stipulates that in order for an agreement to be executed, the object being insured must be an insurable interest, namely an interest that can be valued in money. In other words, according to this principle, a person may insure the goods if the person concerned has an interest in the goods insured.
2. The principle of openness (Utmost Good Faith)
The principle of openness (utmost good faith) is contained in the provisions of Article 251 of the KUHD which essentially states that insurance closure is only valid if the closure is based on good faith.
3. The Principle of Indemnity
The principle of indemnity is contained in the provisions of Article 252 and Article 253 of the Criminal Code. According to the principle of indemnity, the basis for compensation from the insurer to the insured is that the actual loss suffered by the insured is equal to the actual loss suffered by the insured in the sense that it is not permissible to seek profit from insurance compensation. In other words, the essence of the principle of identity is balance, which is a balance between the actual loss suffered by the insured and the amount of compensation. In this regard, the principle of compensation only applies to insurance whose interests can be valued in money, namely loss insurance.
In the KUHD, double insurance is permitted, as long as the insurance is carried out in good faith. However, this good faith is not explained further in the KUHD.
4. Principle of Subrogation
Subrogation is the replacement of the position of the insured by the insurer who has paid compensation, in exercising the rights of the insured to a third party that may cause a loss. This principle of subrogation is contained in the provisions of Article 284 of the KUHD which essentially stipulates that if the insured has received compensation on the basis of other principles, although it is clear that there are other parties who are also responsible for the losses he suffers. Compensation from another party must be submitted to the insurer who has provided the compensation in question.
However, there is a possibility that the loss suffered by the insured is not fully reimbursed by the insurer. If article 284 of the KUHD is implemented strictly, it will cause injustice to the insured because he loses his right to claim compensation from a third party. To solve this problem, according to Emmy Simanjuntak, limited subrogation should be applied.
5. Principle of Proximate Cause
With the closing of the insurance agreement, it creates an obligation to the insurer to provide compensation because the insured suffers a loss. For this reason, it must be determined whether the event that caused the loss is under the responsibility of the insurer. In other words, the relationship between the event and the loss that occurred must be studied. If the loss is caused by an event that is not included in the cause of the loss recognized in the insurance, the insurer is released from his obligations.
6. The principle of gotong royong
This principle means that the problem solving that arises is done together.
