Since accidents caused by Indonesia's poor transport network regularly leave victims' loved ones in financial turmoil, the government is improving its compensation for families of victims.

The Finance Ministry issued Monday a new decree for state insurance firm PT Jasa Raharja to increase insurance pay-outs for victims and families of transport accidents.

Starting March 27, the ministry is set to raise insurance claims by 150 percent for people involved in accidents on public transport including buses, trains, ferries, passenger vessels and crossing boats.

More compensation will also be given to victims of traffic accidents in public and private vehicles.

Aircraft accident victims are excluded from the new decree.

Analysts have blamed the high accident rate on carelessness of both public and private vehicle drivers, bad transport infrastructure and poor maintenance.

Police have also allowed accidents to happen by regularly issuing driving licenses, to people who cannot drive, in exchange for kickbacks, analysts said.

Land Transportation Association (Organda) Jakarta Chapter chairman Hery Rotti told The Jakarta Post the association had approved the decree as it would help ease financial burdens for victims' families.

"It is good for the people. The government has been very kind this time," he said.

Under the decree, families of deceased victims are set to receive Rp 25 million (US$2,750), up from Rp 10 million.

Compensation for accidents resulting in permanent disabilities will also be raised to Rp 25 million per person, from the current Rp 10 million.

Maximum claims for hospital fees will be increased to Rp 10 million per person from Rp 5 million, while burial expenses will rise to Rp 2 million per person, from Rp 1 million.

The decree also calls for higher insurance premiums for public transport users of between Rp 60 and Rp 2,000 per person. The increase is unlikely to affect the cost of public transport, which is used mainly by low income earners.

Organda head Heri said the association would not increase public transport prices, used mainly by people on low incomes, despite public vehicle owners being charged higher fees.

Both public and private vehicle owners are required to pay higher premiums on their vehicle registrations.

Owners of motorcycles with engine capacities of between 50 cc and 250 cc will have to pay premiums of Rp 35,000 per vehicle annually, up from the current Rp 22,000.

Private car owners will have to spend Rp 143,000 for a car with an engine capacity of below 2,400 cc, up from Rp 73,000.

Public transport owners of vehicles with an engine capacity of below 1,600 cc will pay premiums of Rp 73,000, up from Rp 43,000, while vehicles with an engine capacity above 1,600 cc will cost Rp 90,000, up from Rp 53,000, to insure.

Popular

Java airports grounded by low demand, poor planning

Trump says Indonesia to face 19 percent tariff under trade deal

ASML warns it may not achieve growth in 2026, shares drop