OJK Delays Mandatory Vehicle Insurance Program Pending Government Regulation
Jakarta. The implementation of mandatory third-party liability (TPL) insurance for motor vehicles, originally scheduled for January 2025, has been delayed as the Financial Services Authority (OJK) awaits a government regulation. OJK has not provided a timeline for the regulation's issuance.
The program is mandated under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK). Once the government regulation is issued, OJK will work with the government to move forward with the initiative.
"For now, TPL is mandatory only for vehicles financed through loans from banks or multi-finance companies. For non-loan vehicles, it will depend on the Government Regulation. We are waiting for that. OJK will act accordingly afterward," said Ogi Prastomiyono, OJK’s Chief Executive for Insurance, Guarantee, and Pension Fund Supervision.
The mandatory insurance provisions in UU P2SK are detailed in Chapter VI, Article 39A, and include programs such as third-party liability (TPL) for traffic accidents, fire insurance, and disaster risk home insurance.
The TPL insurance program aims to reduce the financial burden of accidents and promote safer driving behavior. It offers increased protection and security for the public, potentially contributing to economic growth.
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