The Characteristics of Non-Litigation Resolution for Life Insurance Lawsuit in Indonesia

  • Mokhamad Khoirul HUDA Hang Tuah University, Faculty of Law, Surabaya, Indonesia
  • Agus Yudha HERNOKO Airlangga University, Faculty of Law, Surabaya, Indonesia
  • Ridwan KHAIRANDY Islamic University of Indonesia, Faculty of Law, Yogyakarta, Indonesia

Abstract

This study analyzed the characteristics of non-litigation resolution for life insurance lawsuit in Indonesia. The result found that the non-litigation solution for life insurance lawsuit in Indonesia must be through Department of Mediation and Arbitration of Insurance (in Indonesia, known as BMAI). When the mediation -as the legal action from a costumer- was objected, the lawsuit would proceed to the adjudication. When the customer won on this adjudication level, the insurance company was then obligated to do some payment as mentioned on the insurance policy. Furthermore, when the legal action of a customer was objected, the customer was then free to do an arbitrage legal action. The arbitration was final and had fixed legal power. Thus, any appeal, cassation, or judicial review could not be held. The solution for life insurance lawsuit through BMAI has several characteristics such as quick in procedures, dynamic, innovative, cheap, and low budget. In addition, the dispute solution through BMAI is confidential, quick in time, and supported by some experts on related types of lawsuit, thus, it may result in fair judgment.

References

[1] Agrawal, K. 2014. Justice Dispensation Through The Alternative Dispute Resolution System in India. Russian Law Journal, II(2):63-74.
[2] Aqil, M. et. al. 2014. Factor Influencing Insurance Agents Intention to Leave: Findings from Life Insurance Sector in Pakistan. International Journal of Marketing and Technology. 4(4): 205.
[3] Bandle, A.L., and Theurich, S. 2011. Alternative Dispute Resolution and Art Law- A New Research Project of the Geneva Art Law Centre. Journal of International Commercial Law and Technology. 6(1):28-41.
[4] Vaughan, E.J., and Vaughan, T. 2003. Fundamentals of Risk and Insurance. London, John Wiley & Sons.Inc.
[5] Greene, M.R., and Trieschmann, J.S. 1988. Risk and Insurance. Seven Editon. West Chicago, South Westhern Publishing Co.
[6] Huda, M.K. 2016. The Principles of Good Faith in Life Insurance Agreement. Yogyakarta, Faculty of Law, Universitas Islam Indonesia.
[7] Huda, M.K., Nugraheni Ninis, Kamarudin. 2016. The Nature of the Contract of Life Insurance Agency after Enactement of the Act Number 40 of 2014 on Insurance, Journal of Advanced Research in Law and Economics,(Volume VII, Fall), 5(19):1037-1041:10.14505/jarle.v7.5(19).09.
[8] Huda, M.K. 2017. An Obligation to Represent and Disclose Material Facts as a Good Faith in Life Insurance Contract. Mediterranean Journal of Social Sciences, 8(4S1):53-59.
[9] Herrieti, Nun. 2015. The Mechanisms of Dispute Resolution after Applying POJK No. 1/POJK.7/2013 and POJK No.1/POJK.7/2014. Journal of Law of Civil Procedure, 1(1): 45-61.
[10] Petrauskas, F., and Kybartiene, Egle. 2011. On Line Dispute Rosolution in Consumer Disputes, Jurisprudence,18(3):921-941.
[11] Purba, R. 1995. Understanding Insurance in Indonesia. Jakarta, Pustaka Binamaan Pressindo.
[12] Puspitasari, Chandra Dewi. 2007. Alternative Resolution for Insurance Dispute through BMAI (a Department of Mediation of Insurance in Indonesia). Journal of Civities, 4 (2): 107-108.
[13] Act Number 30 of 1999 on Arbitration and Dispute Resolution out of Litigation Proceeding
[14] Act Number 21 of 2001 on Financial Services Authority
[15] Act Number 40 of 2014 on Insurance
[16] Regulation of Financial Services Authority Number 1 /POJK.07/2013 about Consumer Protection on Financial Services Sector.
[17] Regulation of Financial Services Authority Number 1/POJK.07/2014 about Alternative Department for Dispute Resolution on Financial Services Sector.
Published
2018-09-03
How to Cite
HUDA, Mokhamad Khoirul; HERNOKO, Agus Yudha; KHAIRANDY, Ridwan. The Characteristics of Non-Litigation Resolution for Life Insurance Lawsuit in Indonesia. Journal of Advanced Research in Law and Economics, [S.l.], v. 8, n. 8, p. 2419-2424, sep. 2018. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/2204>. Date accessed: 08 nov. 2024. doi: https://doi.org/10.14505//jarle.v8.8(30).12.