BANDUNG–Financial Service Authority (OJK) of West Java disseminated circulars regarding the determination of premium rates of insurance business property and motor vehicles in 2017 to stakeholders, employees and insurance brokers in West Java region.
OJK head of West Java, Sarwono said that the socialization aims to prevent conflict between insurance business regarding their premium insurance rates and synergize them.
"Previously there was no restriction governing the amount of premium. This is not good. It could be that bona fide and large insurance companies charge a lower rate, so their demand is high and will interfere with other insurance companies. Therefore we set the highest and lowest limits," he said on Tuesday (18/4) at West Java OJK office.
According to Sarwono the circulars aims to set the number of articles that include setting limits on the amount of the premium percentage, adjust the location or work area and types of insurance.
"We will continue to communicate this idea, especially for providers of vehicle insurance," he said.
OJK also allows insurance companies to provide additional benefits to consumers, such as providing insurance flood, natural disasters or riots, of course, with OJK regulated conditions. jo