Jakarta, CNBC Indonesia – Financial Services Authority (OJK) has ended the Sanctions on the Limitation of Business Activities to PT Asuransi Jiwa Krishna or Krishna Life by letter number S-458 / NB.2 / 2020 dated November 4, 2020. This OJK sanction was given since last August 3 or about 3 months.
Deputy Commissioner for Supervision of Non-Bank Financial Industry II OJK Moch. Ihsanuddin said that the termination of the sanctions for limiting business activities was given because Kresna Life had overcome the causes of the sanctions imposed by fulfilling the provisions by implementing the 2019 inspection recommendations.
“With the end of Business Activity Restriction Sanctions, Kresna Life can carry out new coverage closing activities for all business lines for insurance companies since November 4, 2020 and always refers to the provisions of the applicable laws,” he said as quoted by the official OJK website, Sunday (15/11) / 2020).
Previously, OJK gave sanctions to limit business activities to Kresna Life on August 3, 2020 with the sanction number S-342 / NB.2 / 2020. The sanctions imposed by Kresna Life on limiting business activities have violated the provisions regarding the implementation of recommendations on the results of the examination.
The sanction states that Kresna Life is prohibited from carrying out new coverage closing activities for all business lines for insurance companies from August 3, 2020 until the reason for the imposition of Business Activity Restriction Sanctions. In addition, the Company is still required to carry out obligations that are due.
Previously, the OJK had conducted an inspection for the 2019 period which was carried out in February 2020. During the inspection, the OJK found a number of violations committed by PT Asuransi Jiwa Kresna, especially on K-LITA products.
From the violation, the OJK conducted supervisory actions including:
1. Require Kresna Life to pay claims submitted by policyholders.
2. Instruct Kresna Life to prepare a financial restructuring plan that contains steps for the company’s financial restructuring, commitment of controlling / controlling shareholder to overcome Kresna Life problems, as well as a detailed claim payment plan.
3. OJK has ordered Kresna Life to discontinue K-LITA products, in February 2020, to prevent the risk of difficulty in paying claims for policies due to greater maturity and to protect the interests of policyholders.
4. OJK continues to ask the management and controlling / controlling shareholder of Kresna Life Insurance to be responsible for their obligations to policyholders because this has been an agreement or civil bond between Kresna Life Insurance and the policyholder.
5. OJK asks Kresna Life to immediately submit a settlement plan for Kresna Life Insurance obligations, supported by realistic sources of funds including additional capital or other legitimate sources.
6. OJK also asked the companies that were part of the Kresna Group to open the widest possible communication to policyholders.
“OJK in the near future will facilitate the mediation of the Kresna Life Insurance management meeting and policyholder representatives,” said OJK Deputy Commissioner for Public Relations and Logistics Anto Prabowo in an official statement.
For the record, Kresna Life previously stated that it had to postpone the payment of its two insurance products, namely Kresna Link Investa (K-LITA) and Protecto Investa Kresna (PIK).
KresnaLife also stated that it would open a dialogue with customers to complete payment of policies that previously failed to be paid according to the provisions. Previously, customers had complained to the OJK regarding Kresna Life’s unilateral settlement.
A number of customers have even ‘stormed’ the Kresna Life office due to disagreements with the payment proposal submitted by Kresna Life.
Chairman of the Kresna Link Investa Life Insurance Policy Settlement Team and Protecto Investa Kresna Life Insurance, Supriyadi said that his party is committed in good faith to completing every existing process to achieve the best solution, win-win solutions through amicable consensus deliberations.
“Companies cannot go through this process properly without support from policyholders,” said Supriyadi, in a press statement obtained by CNBC Indonesia, Tuesday (12/8/2020).
Supriyadi said that currently the company has appointed a Policy Settlement Team (TPP) to assist Kresna Life to improve and improve communication with Policyholders.
Later, the team will hear and accommodate every input for the company regarding the scheme and completion process
“We will serve all forms of input, complaints, questions, and submissions related to the completion of the PIK and K-LITA Policies, and assist Kresna Life during the policy settlement process to Policyholders. This also aims to avoid confusion of information regarding the existing process,” continued Supriyadi.
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