The Ministry of Finance Finalizes the Drafting of Regulations for Mandatory Insurance Program

The Ministry of Finance (“Kemenkeu”) is finalizing the preparation of draft regulation that will serve as the legal framework for the implementation of mandatory insurance program. This derivative regulation from Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“UU P2SK”) is targeted to be completed in the first semester.

“The drafting of regulation of the government for mandatory insurance program is currently being finalized," said an official from the Ministry of Finance to Hukumonline.

The mandatory insurance program includes third party liability (“TPL”) insurance for traffic accidents, residential insurance against disaster risks, and crowd event insurance. From a benefits perspective, the TPL insurance product will provide financial protection to the public in the event of an accident and claims from the injured parties.

"Currently, TPL insurance is still voluntary," he concluded.