After Work Hours Accident and Death Insurance

The Indonesian Entrepreneurs Association (Apindo) petitioned the Supreme Court to review Governor of Jakarta Regulation No. 82 of 2006 as it pertained to after work hours accident and death insurance. The Court accepted the petition of Apindo as being in breach of the provisions of Article 1(3) of Law No. 2 of 1992 on Insurance.

Apindo’s primary concerns were two-fold, namely: discrimination and cost. On the discrimination front, it is clear that only regions that have the requisite legislation will require after work hours accident and death insurance to be paid for on behalf of their employees. Simply, if a business has branch offices throughout the archipelago then some employees would be covered and some would not for after work hours accidents and death. The second problematic issue for Apindo was the total cost of compliance. The cost of compliance for large companies based in Jakarta was significant. And, the Jakartan regulation appointed only one insurance company to provide the necessary premiums thereby establishing a monopoly.

The Decision of the Supreme Court states that Gubernatorial Regulation No. 82 of 2006 is not valid and must be repealed within 90 days of the decision being received by the Governor.

The Decision was handed down on 17 September 2008 and has only become publically available this week.