OJK is Otoritas Jasa Keuangan (Financial Services Authority Republic of Indonesia), a Government of Indonesia financial institution.
According to OJK, Insurance is an agreement between an insurance company and policy holder which is the basis for receiving premiums by insurance companies in return for:
a. Provide reimbursement to the insured or policy holder due to losses, damages, costs incurred, loss of profits, or legal liability to third parties that may be suffered by the insured or policy holder due to an uncertain event; or
b. provide payments based on death or life of the insured with benefits which have been determined and / or based on the results of management of funds.
Insurance business is a business activity that is engaged in:
a. Insurance or risk management services.
b. Risk coverage.
c. Marketing and distribution of insurance products or Islamic insurance products.
d. Insurance consulting and intermediation, sharia insurance, reinsurance, or sharia reinsurance, or
e. Appraisal of insurance or Islamic insurance losses.
Insurance business is carried out by:
1. Insurance Company:
a. General Insurance Company, is a company that provides risk insurance services that provide compensation due to losses, damages, costs incurred, loss of profits, or legal responsibility to third parties that may be suffered by the insured or policy holder due to an uncertain event.
b. Life Insurance Company, is a company that provides services in risk management that provides payments to policyholders, insured, or other parties who are entitled in the event the insured dies or remains alive, or other payments to policyholders, insured, or other parties entitled to certain time regulated in the agreement, the amount of which has been determined and / or based on the results of the management of funds.
c. Reinsurance Company, is a company that provides services in the coverage of risks faced by Insurance Company Losses, Life Insurance Companies, Guarantee Companies, or other Reinsurance Companies.
2. Supporting Insurance Business:
a. An Insurance Brokerage Company is a company that provides intermediary services in insurance or sharia insurance coverage and handling insurance compensation settlement by acting for the benefit of the insured.
b. The Reinsurance Brokerage Company is a company that provides intermediary services in reinsurance placement and handling reinsurance compensation solutions by acting for the benefit of insurance companies, guarantee companies, reinsurance companies.
c. Insurance Loss Appraisal Company, is a company that provides valuation services for claims and / or consulting services for insured insurance objects.