Bapepam-LK released vehicle insurance regulations
January 3rd, 2010 | by rarzi |Bapepam-LK released vehicle insurance regulations
Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) issued new regulations for motor vehicle insurance and is valid from March 1, 2010.
Chairman of Bapepam-LK Fuad Ahmad Rahmany said regulations issued December 31, 2009 was the reference element and the Pure Premium Cost Elements General Administration and Other Costs Business Line of Insurance on Motor Vehicles in 2010.
Some basic rules are the first, setting the reference element in the pure premium line of motor vehicle insurance business that can be used by insurance companies.
“Second, general insurance companies that have risk profiles and data loss for a period of 5 years or more must use their own data in determining the pure premium rates by taking into account the credibility factor,” he said, in a press release today.
Third, the use of the credibility factor in determining premium rates are also regulated in ordinances and terentu formula.
Fourth, a general insurance company that has a data administration costs and other general expenses for the period of 5 years or more must use their own data in determining the level of administrative costs and other general expenses highest 15% of gross premiums.
