OJK Improves Governance of Vehicle Insurance Premiums

The Financial Services Authority (“OJK”) is currently refining its OJK Circular (SEOJK) on Premium Tariffs for Property and Motor Vehicle Insurance. This regulation will replace the previous rules governing premium tariffs for property and motor vehicle insurance, with the aim of enhancing governance and protecting policyholders.

“OJK is still conducting analysis and evaluation of the risk developments related to property and motor vehicles”, said the Chief Executive of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, to Hukumonline.

One of the regulations involves adjusting insurance premium tariffs for electric motor vehicles. The premium tariffs for insured electric vehicles will be set 10%–20% higher than those for conventional vehicles of the same type and insured value.