Company Insurance

You need to understand the benefits of Corporate Insurance before you set up company in Indonesia and do business in Indonesia. The insurance benefits of the company are divided into two:

1. Benefits to the company

  • Premiums are lower than similar insurance for individuals
  • By insuring all employees owned will ease the burden on the company’s responsibility if something happens to employees.
  • Can improve the stability of employees because the insurance company that covers the family work to be optimal.


2. Benefits to company employees

  • Works more quietly
  • Focus on company orintation
  • Balance between obligations and work risks

The advantages that can be from both sides can synergize employee and company performance so that symbiotic mutualism occurs when you set up company in Indonesia and do business in Indonesia.

Type of Company Insurance:

Insurance products of this company in general there are 4, namely:

  • Health insurance
  • Pension funds
  • Life insurance
  • Personal accident insurance.

Indo-Ned Consultancy provides our clients to get Company Insurance. We can make monthly report, or / and annual report to help our clients to start business in Indonesia. Indo-Ned Consultancy always inform you up to date regulations, so you can avoid problems in the future when you set up company in Indonesia and do business in Indonesia. Our clients can get consultations from our experienced staffs in Indo-Ned Consultancy. Contact us for more details.

Government Health Insurance

Badan Penyelenggara Jaminan Sosial Kesehatan (BPJS Health)


1. Definition

BPJS own insurance has 2 types of products namely BPJS Employment and BPJS Health. BPJS Health is intended for health insurance, as a protection when customers experience health problems due to accident or illness and should seek treatment, while BPJS Employment includes investments into savings pension funds and insurance accidents are mostly reserved for private employees.

BPJS Health covers most of the hospital bills, this depends on the class taken, because if the BPJS class is in accordance with the hospitalized, the patient does not need to bear additional costs (in this section there are exceptions, the payment remains to be made if certain handling is not covered by BPJS).

2. Premium Value Each

Participant BPJS and health insurance must be required to pay dues or premiums. BPJS Health contribution rate is cheap, and differentiated according to service class.

The contribution for each grades are:

  • Grade 1 is Rp59,500, -,
  • Grade 2 of Rp42,500, – and
  • Grade 3 of Rp25,500, – per month

While the value of health insurance premiums tend to be expensive and differentiated by service class as well as age. The older the age of the participants, the more expensive the insurance premium. Nominally, the value of private health insurance premiums from one to the other may be different. However, an average of $ 300, – to $ 50, – per month.

3. System Services

In terms of service system, BPJS uses tiered system and referral. To check their health, participants must go through first-level health facilities (faskes) first, which can be puskesmas, clinic, or private doctor. If it turns out the illness suffered by the participants can not be handled by faskes 1, just referred to the hospital in cooperation. Even then the participants can not choose the desired hospital themselves, but it depends on the fasces 1 making the referrals. Although in emergency situations, participants can directly seek treatment to any hospital, but BPJS enact a fairly tight emergency provision.

In health insurance, the applied service system is direct. This means that participants can seek
treatment directly to the desired hospital without the need for referral. The origin of the intended hospital has cooperated with the insurance company that followed. That way, participants can get health services quickly. In fact, health insurance participants tend to be prioritized compared to BPJS participants.

4. Limitations of the ceiling

Use of health services with BPJS is not restricted by the ceiling. Regardless of the cost of examination and treatment charged to the participants will be borne entirely by BPJS. Therefore, participants no longer need to worry about the cost of care when experiencing health problems, whatever the disease. Conversely, the cost of care on health insurance is limited by the ceiling. For example, participants buy insurance premiums with a ceiling of Rp 20 million. If the participant is sick and treated with total cost reaches more than the ceiling, then the excess cost becomes the responsibility of the participant itself.

5. Age Restrictions

Participants BPJS no age limit, in the sense of any age a person can still be a participant BPJS. While on health insurance there is an age limit. Generally health insurance refuses the participation of someone who has entered the age of unproductive, ie 55 years and over.

6. Pre Existing Condition

BPJS does not impose pre existing condition. It is intended that the BPJS accepts the membership of any person regardless of the condition of his illness. In contrast to health insurance that implements pre existing condition. That is, the disease that had suffered by the participants before following the health insurance will not be guaranteed the financing.

Pension Insurance

Life Insurance

The main objective of life insurance in pension planning is life insurance trying to ensure that if something happens (eg early death), people who depend on us (spouse and child) can survive. At least our spouses can use the funds to meet the needs of life until old age. Life Insurance is divided into 3:

1. Life Life Insurance (Term)

Term Life Life Insurance is the first time life insurance to serve life insurance customers. Characteristics of the products of term life insurance is as follows:

  • Provide life protection within a certain time according to the initial agreement between the policyholder and the company. Usually with a contract period of 5, 10, 15 or 20 years.
  • The amount of premium is flexible and can be determined according to ability.
  • If there is a risk such as death, the sum assured can be obtained very much in case the policyholder dies when the contact is still active.
  • Sum assured may be lost if in the contract period the policyholder does not occur health problems or death.

Life insurance term life is the initial and fundamental concept of life insurance products, which is to protect customers during the contract and sum assured, including premiums paid will be forfeited if no claim occurred during the contract period. The excess is the relatively cheap premium for the value of a large telatif coverage.

2. Whole Life Insurance (Lifetime)

Life Insurance Whole Life is used by people who want to get protection as well as saving. This product is different from unit link which also function as investment and protection media in one product. The following are the product characteristics of the Whole Life Life Insurance:

  • Can provide protection up to 100 years.
  • Suitable for you who want to save in the long term. Because when the contract expires, the sum assured that every month you pay can be disbursed entirely.
  • Policy holder is given convenience if at any time can not pay premium installment. You can pay it with the cash value of the paid premium.
  • Because it provides benefits for long-term protection, the monthly premium payment is greater than term life insurance (it may double).
  • The cash value offered to the policyholder is not too large because the interest offered is only 4% per annum (not tax-deductible).

Whole Life Life Insurance is suitable for customers who expect to get comfort in getting the protection for life. Whole Life Life Insurance also has a long-term plan to provide “inheritance” to the family or simply enjoy the cash value of the premium paid in old age later.

3. Endowment Life Insurance (Dwiguna)

Endowment Life Insurance (Dwiguna) is similar to term insurance. Only this product has a feature as a savings. That is, the policyholders can get the cash value from the installment of premiums paid each month within a specified time period. More details about the characteristics of this bi-life insurance product are described below:

  • Can be used as a savings medium because it offers cash value that can be cashed on the contract term expires or can be withdrawn within a few years.
  • Premiums paid by policyholders are greater than those of other types of insurance.
  • Though expensive (premiums can start from Rp 3,000,000 per year), Endowment Life Insurance is in high demand for the middle class for the purpose of saving and getting protection. Endowment Life Insurance is more suitable for those who have more funds and want to get the maximum protection as well as saving. Relatively expensive premiums are proportional to the expected protection and value of savings.
  • In retirement planning we need to pay attention to the investment side and insurance side. Insurance to consider is also quite complex, because at the time of retirement a person has quite a lot of limitations (limited income fixed income, health limitations and others). Actually there are several ways that we can use to earn a regular income at retirement, but there is a sacrifice that we must pay.


Self-Acid Insurance

1. Definision

An insurance product that guarantees the risk if the Insured suffers bodily injury caused by an accident that occurs suddenly and comes from outside and benefits provided in accordance with the terms and conditions stated in the policy.

2. Major benefits

The following is a general overview of the warranty for you:

  • Guarantees of death and / or permanent disability (comprehensive)
  • Medical cost guarantee


3. The amount of premium

The amount of your premium varies depending on:

  • Your age
  • Your work


Death / Fixed Defect

Insured Value Rp. 100,000,000
Premium Rate 0.10%
Premium : Rp. 100,000,000 x 0.10% = Rp. 100,000

Medical Cost Guarantee

Insured Value Rp. 10,000,000
Premium rate 0.75%
Premium Rp. 100,000,000 x 0.75% = Rp. 75,000

Property Insurance

Property insurance provides you with protection in the event of loss caused by fire, theft, or damage through natural disasters. Property insurance is subdivided into two: PAR (Property All Risk) and PSAKI (Indonesian Standard Fire Insurance Policy). Here is the definition of each of the above property insurance products:

1. All Risk / Industrial All Risk Property

All Risk / Industrial All Risk Property is a unnamed insurance policy of fire insurance, which provides a guarantee for all risks incurred on property and / or insured interests unless the risks contained in the exception are war, terrorism, nuclear and radioactive, delay, loss of market share or business interruption; deliberate, dishonest employees; mechanical damage and boilers; wear, corrosion, the nature of the goods themselves; pollution or contamination.

Assurance of Property All Risks Insurance (PAR) includes:

  • Warranties for Riot, Strikes, Deeds and Misfortune
  • Warranties for Hurricanes, Storms, Floods and Water Damage
  • Guarantees for Earthquakes, Volcanic Eruptions and Tsunamis
  • Guarantee for Landslide and Land Movement

The benefits are: PAR (Property All Risk) for non-industrial buildings such as offices, homes, hospitals, schools etc. IAR (Industrial All Risk) for industrial buildings such as factories, warehouses, shops, malls etc.

2. Indonesian Standard Fire Insurance Policy (PSAKI)

Indonesian Standard Fire Insurance Policy is a standard policy issued by the General Insurance Association of Indonesia (AAUI) for fire insurance. The benefit of this property insurance product is to provide protection for insured property and / or interest directly caused by: fire, lightning, explosion, aircraft crash, and smoke.

In addition to the main benefits listed in PSAKI, Fire insurance may be extended with a guarantee on other risks not covered under PSAKI, among others:

  • Riots, Strikes, Damage Due to Deeds, Riot
  • Floods, Hurricanes, Storms and Water Damage
  • Landslide
  • Demolition
  • Business Interruption (loss of profit)


Benefits of Property Insurance

1. Shielded from financial losses

One of the best property insurance losses is to protect against financial losses. In the event of a disaster or theft, you risk losing financial property and losses. By having all risk insurance, we can minimize the risk due to unexpected events and anticipate possible financial losses.

2. Shielded from loss of profit

If you use the services of all risk property insurance and use business interruption policy, you will be protected from financial losses due to disruption to your business because the insurance company all risk provides protection against loss of income or profits due to business interruption such as loss, destruction, and damage.

3. Gaining serenity

If you have the best property insurance, at least you have guaranteed the protection of financial loss risk due to unforeseen events that affect your property. So, you can feel more peaceful and secure because it is protected.

4. Property is assured

Property insurance provides you with protection in the event of loss caused by fire, theft, or damage through natural disasters. Property insurance is subdivided into two: PAR (Property All Risk) and PSAKI (Indonesian Standard Fire Insurance Policy). Property insurance coverage covers a wider range of floods, theft, strikes, riots, and riots. Indeed it is also mentioned in fire insurance protection, but customers will incur an additional premium cost, while property insurance will not be charged additional premiums. You do not have to worry about your property while on vacation.

5. Protect from fire

There are 3 kinds of fires that participate in the insurance protection that is fire caused by selfgenerated fire, short circuit or short circuit, and fire caused by other bedan propagation around the origin of fire and fire that happened not caused by excluded in the insurance policy. vacation, you do not need to worry about the protection of your property.

Fire Insurance

In the fire insurance policy there are five risks that are guaranteed, namely:

1. Fire

Damage caused by fire due to personal or other fault (robbers, neighbors, servants themselves) for lack of caution or other causes.

2. Lightning

Damage or loss is directly caused by a lightning strike. Special electronic devices and electrical installations on the property can be guaranteed when lightning causes a fire to the object.

3. Explosion

Damage caused by any kind of explosion, except explosions caused by nuclear power.

4. Fall of the Aircraft

Damage due to physical impacts between property by aircraft including helicopters.

5. Smoke

Smoke that comes from the burning of insured property or interest.

Additional Insurance of Fire Insurance

In addition to the above five risks, there is also an extension of collateral that can be granted with additional premium fire insurance. Some of these guarantees are as follows:

  • Fire or explosion caused by earthquakes, volcanic eruptions, and tsunamis
  • Landslides
  • Be hit by a vehicle
  • Riot, strike, and loss due to evil and riots
  • Hurricanes, storms, floods, and water damage
  • The cost of cleaning the debris


General Terms

  • In fire insurance all kinds of goods can be insured, but the important thing is the goods in the house must be recorded or stated in writing in the policy made. Any property that enters in the property to be insured shall be given detailed information, such as brand, type, year of manufacture, purchase price, and number of units.
  • These details are required by both the customer and the insurer. Why is that? Because, if there is a risk, then the customer easily make a claim in the form of goods with specifications as in the attachment of insurance policies as well as forecasts of large losses incurred.
  • Besides protection and guarantee, insurance companies also offer various benefits such as getting inputs that are useful to minimize the occurrence of risks that will occur. In
    addition, most insurance companies have experienced suvey teams that will be able to provide recommendations to minimize the risk of property insured.


Required documents

The property insurance application requires several supporting documents requested as proof of requirement. For example, you want to take shophouse insurance that you have, then the letters from the shophouse must be attached. The insurer also often conducts surveys to the property location directly. In general, here are some documents to prepare:

  • Copy of ID card
  • Photocopy of Company Deed (if the property is insured office or building)
  • Photocopy of Soil Certificate • Photocopy of Building Permit (IMB)
  • Photocopy of Land and Building Tax (PBB)


Advantages of Property Insurance

Property insurance aims to make you feel secure and secure with the protection of property assets owned. Known two types of risks in property insurance:

General risk

First is the general risk, ie the risk that guarantees all causes of loss not specifically excluded in the policy. Common exceptions to common risk policies include damage caused by earthquakes, floods, nuclear incidents, acts of terrorism and war. Example of coverage in this insurance is the property insurance all risks.

Special risk

Second is the special risk, ie the risk that requires special causes of loss to be mentioned in the insurance policy to be given. Some of the risks that can be included in this category include events that cause damage such as fire, lightning blast, and theft. An example of insurance is fire insurance. There are several things that can be insured on property insurance, including; buildings, home furnishings, home supplies, machinery, merchandise, inventory or finished goods, and so on.

Premium Value

Before doing the calculation of premium, in property insurance known term TSI (Total Sum Insured) is amount of property value as a whole, price of building plus price of building contents. The value of this treasure is demanded by the insured on the insurance coverage to the insurer. Let’s say you have a house worth $ 500. The value includes the building and its contents. To calculate Insurance property premium cost for example as follows:
Value of Property (TSI): Rp500,000,000 (building price and price of building contents)
Rate: 0.0294%

So, the big premiums that you can pay for your home are: Rp. 500,000,000 x 0.0294% = Rp. 147,000

The fee applies to residential or apartment with a height of less than 9 floors. Meanwhile, for other types of disasters not mentioned above, the calculation rate is different. In addition to using the above calculation method, the calculation of premiums performed by the insurer is also based on several considerations such as location, property prices, the level of risk of occurrence of damage (prone to disaster or not), and the quality of the construction of the building itself is easily damaged or not.

The property insurance you submit will be approved if:

  • Not suffering any losses that will be guaranteed for 6 years back
  • Access to property can be passed by Fire Department
  • Not near the River / Sutet
  • Not close to traditional markets
  • The upfront of the building is a two-lane vehicle

The premium to be paid is not too big. So it’s better to protect your home right now than to lose even more.

In addition to the calculation of premiums, insurance companies also consider some of these points:

    • The development of property values: usually this is related to the location and price of the property market.
    • Level of risk of damage: eg houses in flood prone areas or not.
    • The quality of building construction: if the quality of construction is low then the risk is easily damaged, the premium becomes expensive.


It Affects Premiums

Indemnification is made by the insurer against the insured. In order to obtain this benefit, the insured party must pay a certain fee (premium) on the insurer. The amount of the fee is in accordance with the agreement and stated in the insurance letter. There are several factors that can affect the premium amount of the insured to the insurer, namely:

    • The function of the property building
    • Area of the pledged property
    • Construction of property buildings
    • Environment around the property
    • Records of causes of losses that have occurred
    • Risk Guaranteed Fire Insurance

If you need more informations and need assistance, please feel free to contact us.

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