Model and Implications Failure to Pay Insurance Claims in Indonesia

Abstract

Insurance can occur because of an agreement, namely an agreement between the Insurance Company and the Customer through an agent. The customer is the weak party, so in the insurance agreement a customer needs to be protected.The aim of this research is to find out and analyze forms of protection for customers who fail to pay and to find out and analyze the factors that cause insurance companies to fail to pay insurance claims. The approach methodology used is a normative juridical method supported by field data, namelyu using secondary data which is supported by primary data and analyzed descriptively qualitatively. The research results obtained show that customers need to be protected based on legal protection theory because customers are in a weak position, they easily trust insurance companies as companies that provide protection against the risks faced and the factors that cause insurance companies to fail to pay insurance claims are one of them is not implementing it according to the provisions of the law (Insurance Law). Another reason is that the company's financial condition is not healthy, the implementation of risk management in the company is not optimal.