Agus Sahbani, Mahinda Arkyasa
Four insurance policyholders of Bumiputera 1912 (Bumiputera)—a mutual insurance company—submitted a request for judicial review of Article 7 (3) of Law No. 2 of 1992 on Insurance (Insurance Law) to the Constitutional Court (MK).
The applicants argue that the article discriminates against mutual insurance companies and contradicts Article 28D (1) and (2) of the 1945 Constitution.
“It causes legal uncertainty for the policy holders,” said M Arif Setiawan, the applicants’ attorney, after a preliminary examination at MK, Wednesday (3/5).
Article 7 (3) of Insurance Law states that provisions on mutual insurance companies will be stipulated under a law.
Arif explained that the article is discriminative because currently, the Government has only issued laws governing insurance companies that were formed as limited liability companies or cooperatives, leaving mutual insurance companies unregulated.
“This is an act of discrimination, why is there still no law on mutual insurance companies?” he inquired.
He further added that the lack of legal framework for mutual insurance companies has rendered Bumiputera unable to participate in procurement tenders.
“This is a clear loss,” Arif concluded.
(jt)
Agus Sahbani, Mahinda Arkyasa
Four insurance policyholders of Bumiputera 1912 (Bumiputera)—a mutual insurance company—submitted a request for judicial review of Article 7 (3) of Law No. 2 of 1992 on Insurance (Insurance Law) to the Constitutional Court (MK).
The applicants argue that the article discriminates against mutual insurance companies and contradicts Article 28D (1) and (2) of the 1945 Constitution.
“It causes legal uncertainty for the policy holders,” said M Arif Setiawan, the applicants’ attorney, after a preliminary examination at MK, Wednesday (3/5).
Article 7 (3) of Insurance Law states that provisions on mutual insurance companies will be stipulated under a law.
Arif explained that the article is discriminative because currently, the Government has only issued laws governing insurance companies that were formed as limited liability companies or cooperatives, leaving mutual insurance companies unregulated.
“This is an act of discrimination, why is there still no law on mutual insurance companies?” he inquired.
He further added that the lack of legal framework for mutual insurance companies has rendered Bumiputera unable to participate in procurement tenders.
“This is a clear loss,” Arif concluded.
(jt)