The Indonesian General Insurance Association (AAUI) has called for the implementation of mandatory third-party liability (MTPL) insurance for all vehicles, citing a rise in motor accidents.
According to the Traffic Police Corps (Korlantas), the number of accident victims reached 148,000 in 2023. Data from AAUI shows that motor vehicle claim payments totaled IDR7 trillion ($438.5 million) for the same year.
Wayan Pariama, AAUI’s deputy chairman for technical affairs (health, motor & TPL), revealed during a media meeting last week that his committee is evaluating the feasibility of establishing a consortium of TPL insurers.
Pariama noted that while many motor insurers in Indonesia currently offer TPL insurance, it remains a voluntary add-on to comprehensive motor insurance policies. Most total-loss-only insurance policies do not include TPL coverage, and a significant number of motorbikes are not insured under MTPL. Presently, MTPL insurance is mandatory only for commercial trucks and vehicles licensed to carry public passengers.
Pariama expressed hope that regulations making TPL insurance mandatory could be enacted by 2025, as reported by Antara News Agency. He mentioned that his committee is also gathering essential motor data, such as premium rates, which the government requires for drafting these regulations.
Additionally, Pariama stated that the plans for mandatory TPL insurance would include coverage obligations for large events, such as football matches. The proposal suggests incorporating the TPL insurance premium into the ticket price for such events.
