Discover a clear glossary of insurance terms, including cash value, pre-existing condition, premium holiday, and more.
Policyholder is an important insurance term to understand in order to ensure transparency, fairness, and security in an insurance agreement. These rights include access to clear information, the ability to file claims, and the right to cancel or modify the policy. In addition, there is legal protection against harmful practices, such as misuse by the insurance company or failure to pay valid claims.
By understanding these rights and protections, you can make wiser decisions when choosing and managing your insurance policy. Let’s explore the details below!
A policyholder is an individual or entity who purchases and owns an insurance policy. The policyholder is responsible for paying the premium and has the right to modify or cancel the policy in accordance with the applicable terms. In some cases, the policyholder may be different from the insured person—the one who receives the benefits of the insurance.
For example, if someone buys a health insurance policy for a family member, that person is the policyholder, while the family member is the insured. Understanding the role of the policyholder is essential to ensure that all rights and responsibilities under the policy are properly upheld.
Policyholders are entitled to several rights and legal protections under Indonesian law. Here are some of them:
Entitled to complete and transparent information about the policy content, benefits, risks, and terms of the insurance.
Policyholders can make changes to the policy (e.g., change the beneficiary) or cancel it according to the terms in the agreement.
Entitled to submit claims and receive benefits as stated in the policy when a covered risk occurs.
If the premium is paid late, a grace period (typically 30 days) is usually granted before the policy is canceled. However, not all insurers offer this benefit, so it’s important to confirm with your insurance provider.
Insurance companies are prohibited from providing misleading information or engaging in unfair practices against policyholders.
If the insurer fails to pay a valid claim, the policyholder can report the issue to the Financial Services Authority (OJK) or the Indonesian Insurance Mediation and Arbitration Board (BMAI).
Policies cannot be canceled unilaterally by the insurer except under specific conditions stated in the contract.
In Indonesia, policyholders’ rights are protected by OJK under Law No. 40 of 2014 concerning Insurance and other related regulations.
By understanding these rights and legal protections, policyholders can ensure they receive the full benefits of their insurance and avoid potential misuse or unfair treatment.
Understanding this insurance terms ensures that your rights are protected and helps prevent misunderstandings when it comes to claims or benefits received.
Roojai is an online insurance provider offering convenience and access to the best insurance protection tailored to your needs. Get more insurance tips or find the right protection solution at Roojai.