Jasa Raharja to increase compensation by up to 15%

JAKARTA. State-owned insurance company PT Jasa Raharja plans to increase compensation to the victims of transportation accidents or their families by up to 15 percent this year, a senior official said in Jakarta on Wednesday.

President director Diding S. Anwar said that the company was currently discussing the increase in compensation payment with the Finance Ministry and other related parties. “We have to make an adjustment in compensation because hospital, medicine, and funeral costs are getting more expensive every year,” he said on the sidelines of the launch of the company’s new service motto PRIME (pro-active, friendly, sincere, easy, and empathy).

Diding said that the increase would be about four times the annual inflation rate, which reached 3.56 percent in January and it would be reasonable enough to cope with the rising costs of medical treatment. He hoped the increase could be implemented this year.

According to existing regulations, Jasa Raharja has to pay compensation of Rp 50 million (US$5,500) to families of the victims who died due to airline accidents and Rp 25 million for the victims who died in sea or road accidents. In addition, the company should pay Rp 10 million for seriously injured victims of sea and road accidents and Rp 25 million for airline accident.

According to the company operational director Budi Setyarso, there was a possibility to increase the compensation by up to 100 percent for injuries caused by transportation accidents. “In the past, we increased compensation for seriously injured victims of road and sea accidents from Rp 5 million to Rp 10 million in 2008,” Budi said.

PT Jasa Raharja paid total claims of Rp 1.42 trillion to the families of dead victims due to accidents and to those injured during 2011, a slight increase from Rp 1.39 trillion in 2010, and Rp 1.36 trillion in 2009. Most of the company’s premium income is invested fixed income and stock market investment instruments.

At present, the company’s total investment reaches Rp 6.7 trillion, 50 percent of which is invested in bonds, 30 percent in mutual funds and the other 20 percent in equity and direct investment. (The Jakarta Post)