The Compulsory Insurance Programme, including vehicle insurance, is still awaiting the issuance of rules as the regulatory framework for its implementation, according to Mr Ogi Prastomiyono, chief executive of the Financial Services Authority's (OJK) Insurance, Guarantee, and Pension Fund Supervision.
In a statement issued by the OJK, Mr Ogi indicates that details that need to be spelt out include the scope and effective date for implementing the programme.
Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) stipulates that the government can establish a Mandatory Insurance Programme according to needs, including motor third-party liability (TPL) insurance related to traffic accidents; fire insurance; and home insurance against disaster risks.
The statement says that an in-depth study is needed first regarding the Mandatory Insurance Programme.
The P2SK Law states that every mandate under the law is to be followed by the preparation of implementing regulations, the stipulation of which will be no later than two years after the P2SK Law was enacted. This law was enacted on 12 January 2023.
This means that implementing regulations for compulsory motor TPL insurance are to be issued in January 2025 at the latest.
Mr Ogi says that the OJK will involve various parties in preparing the regulations for implementing compulsory insurance, including financial institutions, vehicle manufacturers, repair shops, and others.