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Rising vehicle sales lead to increase in insurance claims
The boom in car and motorcycle sales that has accompanied growth of Indonesiaâs middle class has been accompanied by a significant rise in motor vehicle insurance claims
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he boom in car and motorcycle sales that has accompanied growth of Indonesia's middle class has been accompanied by a significant rise in motor vehicle insurance claims.
According to a General Insurance Association of Indonesia (AAUI) report, gross premiums of motor vehicle insurance companies in 2013 reached Rp 13.43 trillion (US$1.18 billion) in 2013, a 15.9 percent increase from 2012's Rp 11.59 trillion.
'Gross claims reached Rp 6.31 trillion, which increased 24.24 percent from the Rp 5.07 trillion in 2012,' Dadang Sukresna, head of statistics, information and analysis at AAUI, was quoted as saying by okezone.com.
AAUI executive director Julian Noor said that one aspect leading to the increase in motor vehicle insurance claims was the rising cost of spare parts, which was a result of a weakened rupiah. Many spare parts are imported.
'Not too long ago, manufacturers and dealers had to adjust vehicle prices due to exchange rate adjustments. This also is related to the change in insurance claims,' Julian said.
The AAUI also reported that motor vehicle insurance companies accounted for a 28.7 percent share of the country's general insurance market. The claims account for 34.55 percent of contributions.
