Privately-owned insurer PT Asuransi Jiwa Kresna (Kresna Life Insurance coverage) is getting ready a scheme to pay out its policyholders, as the corporate reels from the affect of COVID-19 on its funds.
The corporate introduced on Could 14 that it could postpone insurance coverage declare and profit funds for Kresna Hyperlink Investa (Ok-LITA) and Protecto Investa Kresna (PIK) policyholders, citing power majeure as its purpose.
The main points of the scheme will probably be disclosed to its policyholders as late as 30 days from the date of the notification letter issuance on Could 14, Kresna Life introduced in an announcement on Monday.
“The policyholders’ interest is our main priority. Therefore, we will continue to try our best to settle it in good faith by prioritizing our obligations to all policyholders,” president director Kurniadi Sastrawinata mentioned within the assertion.
The insurer additionally requested policyholders for understanding, because it claimed the financial impacts of the COVID-19 pandemic have been behind its failure to pay their insurance policies.
The financial and stock market crises brought on by the pandemic have reportedly affected the insurer’s liquidity for its underlying investments, which led to it delaying and halting its coverage funds briefly, in accordance with its notification letter.
The delay applies to the payout for maturing insurance policies from Feb. 11, 2020, to Feb. 10, 2021, in addition to funding profit fee claims due between Could 14, 2020, and Feb. 10, 2021.
“The adjustment to the amount of policy and investment benefits, along with the payment procedure, will be conducted after Feb. 11, 2021,” it acknowledged.
Nevertheless, Kresna Life isn’t alone, as different insurers have encountered comparable troubles.
Beforehand, ailing life insurer Asuransi Jiwa Bersama (AJB) Bumiputera was mentioned to have been going through difficulties paying its policyholders’ claims following turmoil throughout the insurer’s group since 2016.
State-owned insurer PT Asuransi Jiwasraya has additionally been within the highlight following its failure to pay its prospects’ matured insurance policies worth Rp 16 trillion (US$1.07 billion) as a consequence of funding mismanagement.
On Jan. 24, the AGO ordered the suspension of 800 securities accounts associated to Jiwasraya as a part of its ongoing investigation to uncover alleged corruption on the ailing insurer. The transfer led to privately-owned life insurer PT Asuransi Jiwa Adisarana Wanaartha (WanaArtha Life) affected by liquidity issues.