Indonesia: Opens New Opportunities for Wreck Removal Consortium

Bisnis Indonesia, 10 September 2015
By Anggara Permando .
Dumoly F. Pardede, the Deputy Commissioner of the Supervision of Non-Bank Financial Industry Financial Services Authority (IKNB OJK ) said that the authority is  committed to increasing the capacity of the insurance company. Therefore  Dumoly said, FSA opens the opportunity for an insurance company that wants to market insurance products of removal of wreck consortium by joining the existing or newly formed consortium.
The removal of wreck of hull insurance is the first step to develop a massive potential of Protection and Indemnity ( P & I) in Indonesia. This insurance is compulsory pursuant to the regulation  of the ministry of transportation. At the first time the insurance premium may be small because it takes time grasp the whole market but at the end it will create a good and healthy conditions in marine transportation and as well as for harbors in Indonesia. Dumoly said in Jakarta Wednesday, September 9, 2015.
Dumoly estimates for the initial years, the amount premium that can be achieved ranges from Rp 100 billion to  Rp  200 billion. This number is expected to continue to grow as awareness of the shipowners will incraase. As for insurance companies who intend to form a new consortium, the authorities set a number of conditions, among others are  the company is not being banned, meets the capital limit , has an hull and machinery insurance program and has reinsurance treaty program.
Furthermore, he added consortium also prohibited from acting as fronting and just expect marketing fee only. Dumoly confirms the company must also recruit the hull and machinery experts to support this business.
Darul Dimasqy, head of the department supervisor of IKNB OJK , said this insurance is a mandatory that the consortium should accept the entire ship that fall under this  provisions. According to him, the insurance company can conduct surveys before issuance of the policy, but there is a  mandatory anti-selection policy. There should be no uninsured ships.
All shipowners are obligated to purchase, so the premium collected will be sufficient to run this business .
Wayan Pariama , director of Marketing of Adira said that the premiums of the consortium is quite cheap. Since lounched for the first tie in March 2015 and to date has covered about 1,000 customers. The potential is more than 20,000 vessels.
The first premiums for 1000 ships approximately Rp. 7 billion. He said, this product only covers the wreck removal in shipping lanes or port pool.Claims in force if there is an order from the authorities to withdraw the order ships.

This compulsory insurance, said Wayan excludes the damage of property carried by the vessel. Vessels exclude form this program such as warships, a vessel that used to tack the government\’s job, ships with a tonnage of less than 35Gt , as well as boats that has had over 20 years of age .
Currently, the consortium members consists of 12 general insurance companies led by PT Tugu Pratama Indonesia , Members of the Consortium include PT Asuransi Adira Dinamika , PT Asuransi Astara Buana , PT Asuransi Beringan Sejahtera Arta Makmur , PT Asuransi Central Asia , PT Asuransi Jasa Indonesia , PT Asuransi Jasa Raharja Putra , PT Asuransi Full Artanugraha , PT Asuransi Sinar Mas , PT Asuransi Wahana Tata PT Asuransi Asei Indonesia .