Increasing riots, civil disturbances, political conflicts and public unrest make it important that the property and casualty insurance policies include covers against riots and civil disturbances according to Indonesian financial services regulator Otoritas Jasa Keuangan (OJK).
A news report in https://en.tempo.co/ news-site quoting OJK’s executive head of insurance, guarantee, and pension fund supervision Ogi Prastomiyono said such coverage is increasingly necessary as protests in Indonesia have sometimes escalated into unrest. Mr Ogi said riots, strikes, malicious damage and civil commotion (RSMDCC) insurance, often referred to as riot and civil commotion coverage plays a critical role in such situations.
Mr Ogi was recently addressing the media following OJK’s monthly commissioner meeting. He said, “This expansion of coverage provides certainty for both public and private asset owners against losses resulting from riots or demonstrations.”
OJK is also promoting protection of state-owned assets on a wider scale at both the central and regional government levels through the state-owned property insurance consortium. Currently, many government-owned properties are still not insured under the scheme.
Mr Ogi said he is hopeful that RSMDCC insurance covers will gain more traction as public awareness of risks from civil unrest grows. “We expect business prospects for this type of insurance to strengthen in line with rising awareness.”