The recent Constitutional Court Judgment on Article 251 of the Indonesian Commercial Code introduces a major shift in insurance law, preventing insurers from unilaterally terminating policies due to disclosure obligations. This decision aims to create a fairer balance between insurers and policyholders, ensuring that disputes over claim rejections are resolved through mutual agreement or court proceedings rather than one-sided actions. However, this change also signals a likely increase in insurance disputes, making thorough verification and transparent communication more crucial than ever.

In this article, Dentons HPRP’s lawyers, Michael A. Kaihatu (Partner) and Yonathan Aji Pamungkas (Associate), explore the ruling’s implications for Indonesia’s insurance landscape. They provide key takeaways for insurers, agents, and policyholders, emphasizing the importance of enhanced due diligence and clearer policy frameworks. Read on to understand how this legal shift will shape future insurance disputes and what industry players must do to adapt.

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