OJK Awaits PP on Legal Certainty for Mandatory TPL

The Financial Services Authority (“ OJK ”) has stated that the policy regarding mandatory Third-Party Liability (“ TPL ”) insurance is still awaiting government regulation in the form of Regulation of the Government. OJK itself will prepare a series of implementing regulations once Regulation of the Government is established.

“The implementation of TPL insurance awaits further regulation. To date, Regulation of the Government is still being drafted by the Ministry of Finance as the initiator,” said Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision (KE PPDP) at OJK, in an interview with Hukumonline.

The obligation to participate in TPL insurance is set forth in Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“ Law 4/2023 ”). This policy will also cover liability insurance in areas beyond traffic accidents, including residential property insurance against disaster risks and insurance for crowd events.

“We will continue to conduct further studies, as the law mandates that this must be done,” he added.