Circular Revised, OJK Regulates Insurance Premiums of Electric Motor Vehicles

The Financial Services Authority (“OJK”) is currently drafting a Circular of OJK (Draft Circular) on Property and Motor Vehicle Insurance Premium Tariffs. The Draft Circular will regulate adjustments to insurance premium tariffs for electric motor vehicles, as amended by Circular No. 6/SEOJK.05/2017 on the Determination of Premium or Contribution Tariffs for Property Insurance and Motor Vehicle Insurance Business Lines in 2017 (“Circular 6/2017”).

"The SEOJK is still being drafted, but it is targeted to be issued in 2025," said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee and Pension Fund Supervision (PPDP) at OJK, to Hukumonline.

The premium tariffs for electric vehicles are set differently from conventional vehicles due to the unique risks associated with electric vehicles. However, the overall number of electric vehicles still accounts for a relatively low proportion compared to conventional vehicles.

"We are trying to change the vehicle price categories and risk groups based on vehicle type," he added.