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General Information

General Information

Perkenalan Asuransi

AXA Mandiri provides information about insurance to know the topics of insurance to help you in all your self-protection process

Introduction to Insurance
A more suitable definition of insurance (guarantee) is the economic value of a person in case of risk of death. Thus, the left party can still receive a certain amount of money in the insurance policy agreement, the money can be used as a cost of living by the beneficiaries.

Life Insurance is a form of financial protection provided for the life, health of a person against the risk of death, illness or accident, by the insurance company based on the agreement between the Policyholder as the Insured and the Life Insurance Company as the Insurer in accordance with the conditions stated in the policy.

Function of Insurance:

  • Risk Transfer
    By paying a relatively small premium, a person or company can transfer the uncertainty in life (risk) to the insurance company.
  • Fund Pool
    Premiums that have been received by insurance companies are then collected as funds to pay for any risks that occur.

Benefits of Having Life Insurance
Life insurance needs to be owned with the aim of providing protection against financial losses caused by the risk of uncertainty in human life or for the planning of a happy and prosperous future.

Forms of Life Insurance
Before determining life insurance that suits your needs. Preferably, identify and understand in advance the form of life insurance itself.

  • Traditional Life Insurance
    Is a form of pure life insurance where the Beneficiary will only receive Sum Assured if the Insured dies within the insurance period, or after a certain period of time (when the insurance period has matured).
  • Unit Link Life Insurance
    Is an individual policy that provides life insurance protection, added with the element of investment by using unit prices whose value varies at all times in accordance with the value of the investment asset.

Definition of insurance according to Article 246 of the Code of Trade Law (KUHD) of the Republic of Indonesia:
Insurance or coverage is an agreement, under which an insurer binds itself to the insured by receiving a premium, to provide reimbursement to him for a loss, damage or loss of expected profit, which he may suffer due to an uncertain event.

Berdasarkan definisi tersebut, maka dalam asuransi terkandung 4 unsur, yaitu :

  • Insured party that promises to pay premiums to the insurer, at once or gradually.
  • The insurer who promised to pay some money (compensation) to the insured, at the same time or gradually in case something containing uncertain elements.
  • An event (accident) that is uncertain (previously unknown).
  • Interests that may be lost due to uncertain events.

Understanding and Principles of Risk
In everyday life we often hear the term "risk". Various risks, such as the risk of fire, being hit by other vehicles on the road, the risk of flooding in the rainy season and so on, can cause us to bear losses if those risks are not anticipated from the beginning. The next question is, what is the definition of "risk", especially in insurance?

What is "risk"?
The definition of "risk" in insurance is the uncertainty of the occurrence of an event that can cause economic losses.

What are the forms of risk?
Forms of risk include pure risk, speculative risk, particular risk and fundamental risk.
Pure risk is a risk that as a result there are only 2 kinds: loss or break even, for example theft, accident or fire. Speculative risk is a risk that consequently there are 3 kinds: loss, profit or break even, for example gambling. Particular risks are risks derived from individuals and local impacts, such as plane crashes, car crashes and downed ships. While fundamental risks are risks that do not come from individuals and their impacts are widespread, for example hurricanes, earthquakes and floods.

RISK MANAGEMENT
As an organization, companies generally have a goal in implementing risk management. The objectives to be achieved include reducing spending, preventing companies, personal and family from failure, raising profits, reducing production costs and others.

What is "risk management"?
Risk management is a risk management process that includes identification, evaluation and control of risks that can threaten the continuity of the company's business or activities.

What are the stages in risk management?
The company must go through the stages in implementing risk management, the first stage is to identify the risks that may be experienced by the company, after that, evaluate each risk by reviewing the severity (risk value) and its frequency. Then, the last stage is risk control. This must be divided into 2, namely physical control (risk eliminated, risk minimized) and financial control (risk withheld, risk transferred).

Eliminating risk eliminates all possible losses. For example, in driving a car in the rainy season, the speed of the vehicle is limited to a maximum of 60 km/h. Minimizing the risk is an effort to minimize losses, such as in production, the chance of failed products can be reduced by quality control.

Withholding risk means bearing the whole or part of the risk, by forming a reserve in the company to deal with the losses that will occur (own retention). While the transfer of risk can be done by transferring losses / risks that may occur to other parties, such as insurance companies.

Insurance
Insurance is one form of risk control carried out by transferring risk from one party to another in this case is the insurance company.

What is the meaning of insurance?
According to the Code of Trade Law (KUHD) article 246 it is stated that insurance or coverage is an agreement with which an insurer binds itself to an insured, by receiving a premium, for reimbursement to the insured due to a damage or loss of expected profit that the insured may suffer due to an uncertain event.

Another definition of insurance is a risk transfer from the first party to the other party. In granting is controlled by the rule of law and the validity of principles and teachings universally embraced by the first party and other parties.

From an economic perspective, insurance means a collection of funds that can be used to cover or compensate people who experience a loss.

What are the benefits of insurance?
Apart from being a form of risk control (financially), insurance also has various benefits which are classified into primary, secondary and additional functions.

The main function of insurance is to transfer risk, raise funds and balance premiums. Insurance secondary function is to stimulate business growth, prevent and control losses, has social benefits and as savings. While the additional function of insurance is as an investment fund and invisible earnings.

Are all risks insured?
Not all risks can be insured. The risks that can be insured are risk that can be measured by money, homogeneous risk (the same risk and pretty much guaranteed by insurance), pure risk (this risk does not bring profit), particular risk (risk from individual source), risk that occurs suddenly (accidental), insurable interest (insured has an interest in the object of coverage) and risks that are not contrary to the law.

Basic Principles of Insurance
In the world of insurance there are 6 kinds of basic principles that must be completed, including insurable interest, utmost good faith, proximate cause, indemnity, subrogation, and contribution.

Insurable interest
The right to insure that arises from a financial relationship between the insured and the insured and legally recognized.

Utmost good faith
An act to accurately and completely disclose all material facts about something that will be insured whether requested or not. This means that the insurer must honestly explain clearly everything about the extent of the terms / conditions of the insurance and the insured must also provide clear and correct information on the object or interest insured.

Proximate cause
An active, efficient cause that creates a chain of events that cause an aftermath in the absence of an intervention that begins and actively from a new and independent source.

Indemnity
A mechanism by which the insurer provides financial compensation in its efforts to place the insured in the financial position that he has shortly before the occurrence of losses (KUHD article 252, 253 and affirmed in article 278).

Subrogation
Transfer of claim rights from the insured to the insurer after the claim is paid.

Contribution
The right of the insurer to invite other insurers who are equally responsible. But they do not have to equalize their obligations to the insured to participate in providing indemnity.

Terms in Insurance

Understand more in the meaning of terms often used in insurance to make it easier for you to plan your self-protection.

  • SPPA
    Is the Insurance Closing Request Letter submitted by the Insured to the Insurer to cover the coverage in accordance with the Policy.
  • INSURANCE POLICY/CERTIFICATE
    is an insurance agreement between the Insurer and the Insured containing the provisions of coverage between the Insured and the Insurer.
  • MOTOR VEHICLES
    are all types, brands and types of Motor Vehicles along with everything that becomes part or equipment either existing or will exist in the future, which is the object of consumer financing agreements.
  • PRICE OF INSURANCE
    is the purchase price of a Motor Vehicle (not the price/value of financing) at the commencement of coverage and is stated in the Policy/Insurance Certificate. The Price of Coverage shall be the maximum limit of liability of the Insurer in this Agreement.
  • MARKET PRICE or ACTUAL PRICE
    is the result of sales, if the Motor Vehicle is sold in the free market, which can be obtained by the Insured in free sale of the Motor Vehicle or Motor Vehicle with the same brand, type, location and year of purchase shortly before the loss or damage.
  • MOTOR VEHICLE INSURANCE
    is the coverage of Motor Vehicles based on the provisions, requirements, exceptions stated in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) – The Indonesian General Insurance Association (AAUI) which comes into force at the time the Policy is issued with the following guarantee area:
    • Comprehensive
      is coverage that guarantees loss or damage partially or entirely to the Vehicle caused by the risks guaranteed in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) – Indonesian General Insurance Association (AAUI).
    • Total Loss Only
      i.e. coverage that guarantees the overall loss or damage that occurs to Motor Vehicles caused by the risks guaranteed in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI) - The Indonesian General Insurance Association (AAUI), which if repaired the repair costs are estimated to be equal to or more than 75% (seventy five percent) of the Sum Insured or lost because it is stolen.
  • EXPANSION GUARANTEE:
    • SRCCTS (Strike Riot Civil Commotion Terrorism & Sabotage) / Chaos 4.1.B : Losses caused by conditions / events of riots, strikes, riots, terrorism activities and sabotage (attached).
    • Act of God : Losses caused by natural disaster conditions / events such as Earthquakes, Tsunamis, Erupting Mountains, Landslides, Floods, Typhoons and so on (attached).
    • TJH (Legal Responsibility): responsibility to the third party caused by a motor vehicle accident resulting in damage or loss of the third party, the maximum replacement value up to the promised.
    • PA (Personal Accident) : Losses caused by motor vehicle accidents resulting in death or permanent disability to the driver or passenger of the Motor Vehicle with a maximum limit of replacement in accordance with the specifications of motor vehicles with a maximum of 1 (one) driver and 6 (six) passengers with the value of coverage / replacement (attached).
  • AMOUNT OF COMPENSATION/INDEMNITY
    is the amount of reimbursement given by THE SECOND PARTY to THE FIRST PARTY / Insured for the loss / damage of the Motor Vehicle insured based on the actual price (Market Price) shortly before the occurrence of such loss or damage, as high as the Price of Coverage, after deductible as stated in the Coverage Overview and after being subjected to coverage below the price.
  • DEDUCTIBLE
    is the amount that is the burden of the Insured in any loss / damage taken into account from the amount of compensation.
  • ENDORSEMENT
    is an insurance agreement issued by THE SECOND PARTY based on the approval of THE FIRST PARTY to make changes to the Policy/Insurance Certificate.
  • PREMIUM
    is the amount of money paid by the Insured to THE SECOND PARTY in return for services to coverage or insurance provided by THE SECOND PARTY and does not include stamp duty and the cost of making the Policy / Insurance Certificate (administrative costs).
  • BENEFICIARY
    The name of the person listed in the policy to receive compensation in the event of death to the Insured.
  • APPLICATION
    Form that must be filled in by the Insured Candidate and Prospective Policyholder when applying for Insurance protection to the Insurer.
  • CASH VALUE/RANSOM VALUE
    The amount of money that will be received by the policyholder if he or she cashes in his/her life insurance policy which has savings value benefits.
  • CLAIM
    Application / demand of a policy owner against the insurance company for payment of compensation in accordance with the articles of a policy.
  • CONTESTABLE PERIOD
    The period (two years) in which the Insurer has the right to question or investigate the correctness of the information/data provided by the Insured or the Policyholder in the application letter to determine the next decision on the policy contract.
  • INVESTMENT-LINKED PLAN (insurance program associated with investment)
    The premiums paid are used both to purchase life insurance protection benefits and units in an investment fund portfolio. The price of the units will depend on the investment performance of the fund.
  • LAPSE
    Loss of benefits / guarantees of policy protection caused by premium payments stopped or exceeded the Payment Flexibility Period.
  • LAPSE NOTIFICATION
    Written notification from the Insurer to the Policy Holder that the policy is lapse.
  • MATURITY DATE
    The approved date at which an insurance company will pay a certain amount of cash.
  • MEDICAL CHECK UP
    Medical examination conducted by the insured candidate
  • MINOR
    A minor, who is under 21 years old and unmarried.
  • RECOVERY
    Return of policy status from lapse to inforce to restore protection benefits/guarantees.
  • INSURER
    Insurance Companies that provide Insurance coverage through agreements in the Insurance Contract.
  • POLICY LAPSE (overtime policy)
    Termination of insurance insurer as a result of unpaid premiums.
  • POLICY
    A contract letter containing a life insurance agreement between the Policyholder and the Insurer.
  • ORPHAN POLICY
    A policy whose agent is no longer active.
  • ACTIVE POLICY/INFORCE
    Insurance policy with premium payment on time or fully paid.
  • AUTOMATIC PREMIUM LOAN (APL)
    Automatic policy loan taken from the Policy Cash Value (as long as the Cash Value is sufficient) to pay off unpaid premiums until the end of the flexibility period (not valid for Unit Link Life Insurance Policy).
  • PREMIUM NOTICE
    Notification letter from the Insurer to the Policyholder that a number of premiums will be due soon.
  • PREMIUM
    The amount of money already specified in the policy to be paid to the Insurer for a number of benefits stated in the insurance contract.
  • REGULAR PREMIUM POLICY 
    A policy that requires regular premium payments, for example, monthly, every four months, every six months, or yearly.
  • RIDER (Additional Benefit)
    Rider is an additional benefit that can be included in a basic insurance program, such as a whole life plan or endowment program. These benefits are designed to provide additional financial protection at a lower cost.
    Rasio untuk mengukur kesehatan dan keamanan financial perusahaan asuransi berdasarkan kemampuan modal mereka untuk menutup seluruh kerugian yang ada.
  • SINGLE PREMIUM POLICY
    A policy that only requires a single premium payment made in advance.
  • SUM ASSURED
    Amount of guarantee money to be insured to policyholders.
  • SURRENDER
    Sales of policies to the Insurer which amount is equal to the Cash Value that has been formed when selling the policy.
  • INSURED
    Person whose life/health is covered by the Insurance Contract.
  • SUM ASSURED (FACE AMOUNT)
    The deposit money stated on the policy page will be paid in the event of death or other policy conditions that is paid at the end of the coverage period in accordance with the type of insurance taken. Does not include any additional amounts to be paid for other special provisions.
  • UNDERWRITING (guarantee)
    The process of assessing and classifying the associated risks to the insured candidate, as well as the decision making to accept or reject such risks.
  • WHOLE LIFE PLAN
    This type of life insurance program offers life protection against death or, if applicable, a complete and permanent disability, to the insured.

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