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GO Urban Poor Consortium (UPC) criticized the recent issuance of insurance for flood victims, saying it was too commercial.

Insurance company PT Asuransi Wahana Tata, along with Munich Re and GTZ, issued Manggarai First Alert Protection Card (KPSSM) Saturday, to provide insurance to residents in 23 subdistricts prone to flooding.

Residents, however, will have to spend Rp 50,000 (US$4) to get the card that is valid for a year. The insurance card initially targets lower-income residents.

If cardholders are subject to losses caused by floods, they can submit an insurance claim worth up to Rp 250,000.

Residents can claim the insurance when the water level at Manggarai sluice gate (in South Jakarta) is more than 950-centimeter high. When water reaches that height, the city is at its highest level of alert, meaning thousands have to flee their homes.

UPC chairwoman Wardah Hafidz said the amount of money was not enough to cover material damages residents faced.

"What about people whose houses are carried away in the river? They will need more than Rp 250,000 to build new homes," Wardah told The Jakarta Post.

"This insurance is a commercial product. It's nothing but a disaster that is being commercialised," she said.

She said the program would only burden residents, as they had to pay Rp 50,000 to get a card.

"All flood matters are in the hands of the city administration. It should take real steps in mitigating floods and making sure the city is free from floods," Wardah said.

"And how about people living in Jakarta with no Jakarta identity card? Will they qualify for the insurance? It will be unfair if they cannot apply for the insurance," she said.

Director of PT Asuransi Wahana Tata, Rudy Wanandi, said the insurance was for low-income families who suffered from flooding. The cards will first be offered to 5,000 to 10,000 residents.

Residents can apply for the card by filling in a form and submitting a copy of their ID, driving license or a letter from their neighborhood unit. The card and insurance policy will expire after one year.

Some of the subdistricts included in the insurance program are Manggarai, Bukit Duri and Menteng Dalam in South Jakarta, as well as Cawang, Cililitan, Kampung Melayu, Bidara Cina, Balimester and Cipinang Muara in East Jakarta.

Flooding has been one the capital's biggest problems for years. Clogged drainage pipes and waterways are believed to be some of the reasons causing floods.