Application of Insurance Principles According to the Book of Trade Law and Law Number 40 of 2014

Syafriadi, Syafriadi and Santri, Selvi Harvia (2019) Application of Insurance Principles According to the Book of Trade Law and Law Number 40 of 2014. International Journal of Innovation, Creativity and Change, 10. pp. 206-217. (Unpublished)

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Abstract

Public awareness of the importance of protecting oneself from various risks, which may occur at any time, is one of the causes for the presently high number of insurance users. Risks can result in loss of life or property. This is an advantage for insurance companies that provide insurance services. Insurance is created by the agreement between an Insurance Party and an Insured Party. An insurance agreement is made in the form of a written agreement called a policy. A policy contains rights and obligations for its parties. The Insurance Regulations are found in Article 246 of the Commercial Law and Law Number 40 of 2014. In the provisions of Commercial Law, Insurance must contain insurance principles, namely the Principle of Insurable Interest, the Principle of Utmost Good Faith, the Principle of Indemnity, the Principle of Subrogation, the Principle of Contribution, and the Principle of Proxima Causa. In practice, not all insurance principles apply to insurance agreements. Not applying the principles of insurance results in losses for the insured, i.e. the compensation is not paid to the insured. The issue is that while the application of insurance principles is only aimed at the insured, the guarantor is not,thus causing injustice for the parties. Issues raised in this writing are the Application of Insurance Principles in accordance with the provisions of the prevailing laws and regulations, and the procedures carried out by the Insured in obtaining compensation. The purposes of this paper are to ensure that the principles of insurance are applied in accordance with the provisions of the applicable regulations so that the compensation received by the insured is not obstructed; and to explain what procedures are carried out by the insured in obtaining compensation. The legal research method that will be used by the author is empirical juridical. This is a type of empirical research done by examining primary data from interviews comprising questions related to the application of insurance principles, while also juridically using secondary data to analyse the rules and regulations relating to insurance

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