DIGIVESTASI - The government will enforce mandatory third-party liability (TPL) vehicle insurance for all motor vehicles starting January 2025. This insurance provides protection against third-party claims for compensation. The mandate is regulated under Law No. 4 of 2023 on Financial Sector Development and Strengthening. Currently, the Financial Services Authority (OJK) is awaiting the issuance of a government regulation to implement the mandatory insurance program.

This insurance implementation offers several benefits for vehicle owners. According to the Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at OJK, Ogi Prastomiyono, TPL insurance will be very useful in the event of accidents involving third parties, as it can alleviate the burden of compensation costs. The premiums for this insurance are also predicted to be more affordable compared to current insurance premiums. With better protection against accident risks, the public is expected to feel safer while driving.

Ogi also added that the enforcement of this vehicle insurance could contribute to economic growth.

"Economic growth can also increase," said Ogi, as reported by Koran Tempo on July 22, 2024.

Echoing Ogi, the Executive Director of the Indonesian General Insurance Association (AAUI), Bern Dwyanto, also highlighted the benefits of TPL insurance. According to Bern, this insurance can reduce the financial burden on the government in providing compensation to accident victims and their families.

"Additionally, this insurance provides financial assistance to accident victims or their families," said Bern on July 21, 2024.

Bern explained that the compensation provided by the government can include medical expenses for injured victims, allowances for the heirs of deceased victims, and reimbursement of material losses due to accidents.

Kornelius Simanjuntak, a member of the AAUI Supervisory Board and a lecturer at the Faculty of Law, University of Indonesia, added that compensation to accident victims will be covered by private insurance companies, thereby alleviating the government's burden in handling traffic accidents.

According to dpr.go.id, the implementation of TPL vehicle insurance will make insurance companies responsible for covering damage costs according to the agreement in the insurance policy. If an accident involves another vehicle, the cost of repairing the third party’s vehicle will be covered by the insurance company. So far, losses from accidents have only been covered by the victims through Jasa Raharja.

However, despite the benefits of protection during third-party traffic accidents, the mandatory vehicle insurance requirement has also faced criticism from some quarters.

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