New Insurance Bill passed in Indonesia

The Insurance Bill (Insurance Bill) was passed by the House of Representatives on 23 September 2014. The Insurance Bill repeals and replaces the current Law No. 2 of 1992 on The Insurance Business.

In addition to the current insurance businesses such as general insurance, life insurance, and reinsurance businesses, the Insurance Bill regulates Sharia insurance.

Under the Insurance Bill:

1. An insurance business may be in the form of (i) a limited liability company, (ii) a cooperative, or (iii) a mutual business (to be further regulated in an implementing regulation).
2. The cooperative and mutual businesses are only entitled to provide insurance and sharia insurance services for its members.