10 Types of Insurance Available in Indonesia, Check Out the Explanation!

Kapanlagi.com - Are you one of those people who are still confused about the types of insurance in Indonesia? Well, before you understand the types of insurance, it's good for you to know first what insurance is. According to the Financial Services Authority, insurance is an agreement between an insurance service provider as the insurer and the public who holds a policy and is known as the insured party who is required to pay a certain premium in order to provide compensation for the risks of loss, damage, death, and loss of expected profits that may occur from unforeseen events.

Simply put, insurance is an agreement that applies between two parties. One party will be obligated to pay a certain amount of money or premium, while the other party will bear the risks. As you know, there are many types of insurance in Indonesia. What are they? Let's directly see the following review.

1. Health Insurance

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The first type of insurance is health insurance. This type of insurance deals with health problems caused by illness and covers the cost of treatment. The causes of illness that are usually covered by this insurance include injury, disability, illness, and death due to accidents. Health insurance is also known to be purchasable for the benefit of the insured only or for the benefit of third parties.

2. Life Insurance

Next, the type of insurance in Indonesia is life insurance. This type of insurance provides financial benefits to the insured upon their death. Life insurance can be purchased for the benefit of oneself and in the name of the insured only or for the benefit of third parties.

Furthermore, life insurance is also known to be purchasable for the life of another person. The payment system for life insurance varies. Some insurance companies provide payment after death, while others may allow the insured to claim funds before their death. Insurance

3. Education Insurance

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The type of education insurance is also important and popular because it has many benefits. Education insurance itself is the best solution to guarantee a better life, especially for children's education. The premium costs vary depending on the insurance company, such as the level of education to be pursued in the future. If you have education insurance, parents can be at ease because their children's education is already guaranteed.

4. Vehicle Insurance

Another type of insurance commonly found in Indonesia is vehicle insurance. This type of insurance has the advantage of protecting vehicles from various risks on the road. Some benefits you can get by participating in vehicle insurance are the protection of your vehicle from the risks of theft, accidents, and natural disasters.

5. Home and Property Ownership Insurance

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Next, the type of insurance in Indonesia is home and property ownership insurance. This type of insurance will protect your valuable assets such as houses, companies, and other valuable items. The purpose of this insurance is to protect against the risk of loss or damage that may occur to the insured's personal belongings.

Basically, by registering for this home and property ownership insurance, you will receive compensation for losses resulting from risks that affect your house or property.

6. Business Insurance

Business insurance is a type of insurance that provides protection against large-scale damage, loss, or loss that may occur in a person's business. The benefits of business insurance include compensation for damage caused by fire, explosion, earthquake, lightning, flood, storm, rain, collision, and riots.

Thus, it provides protection for employees as business assets, protection for investments and businesses, comprehensive life insurance for all employees, and guaranteed health insurance packages for employees.

7. Credit Insurance

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Credit insurance is protection or failure to repay credit facilities or cash loans such as working capital, trade credit, and others. This credit insurance aims to protect banks or other financial institutions from the possibility of not recovering the credit loaned to customers and to provide guidance and security in lending.

8. Marine Insurance

Furthermore, another type of insurance you need to know is marine insurance. This insurance is related to all activities at sea, such as logistics shipping by ship. By having marine insurance, marine activities are protected, including those who work as fishermen. Several factors that affect marine transportation insurance premiums are the insured goods, packaging of goods, insured risks, transportation, and travel.

9. Travel Insurance

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The next type of insurance is travel insurance. This insurance is very beneficial for those who have a hobby of traveling. The purpose of this insurance is to protect oneself against the risks that can occur when someone is on a trip. The possible risks that may occur during a trip include lost luggage at the airport when going abroad, flight delays, sudden illness during a vacation, or accidents. The benefit that you can take from this travel insurance is that the cost of the losses you experience becomes lighter.

10. General Insurance

Finally, the type of insurance in Indonesia is general insurance. This type of insurance provides protection against the risks of loss of benefits and legal liability to third parties. Short-term insurance, which lasts for about one year, can be classified as social insurance and voluntary insurance.

Social insurance is insurance that is mandatory for everyone or residents with the aim of providing old-age security. On the other hand, voluntary insurance can be further divided into 2 classifications, namely Government Insurance and Commercial Insurance. Government insurance is insurance run by the government, while commercial insurance is insurance aimed at providing protection to individuals.

Those are a series of important types of insurance that you need to know. Hopefully, it will increase your knowledge.

(kpl/dtm)