SEAToday.com, Jakarta - The Financial Services Authority (OJK) has stated that all motorized vehicles in Indonesia must be covered by Third Party Liability (TPL) insurance by at least January 2025. TPL itself is an insurance product that provides compensation to third parties directly caused by the insured motor vehicle as a result of the risks guaranteed in the policy.
OJK's Chief Executive of Insurance, Guarantee and Pension Fund Supervision Ogi Prastomiyono said on Tuesday (7/16) that this practice has been applied in various other countries, including in Southeast Asia. Compulsory insurance for these vehicles is mutual assistance, so that if there is a traffic accident involving many parties, losses can be minimized.
Furthermore, Ogi assessed that in order to realize this, a mechanism (application) for implementing compulsory insurance for motor vehicles is needed. In addition, Ogi estimated that the price will depend on the number of participants.
