he chairman of the members’ representative body (BPA) of mutual life insurer Asuransi Jiwa Bersama (AJB) Bumiputera, Abdul Kadir, has resigned from his position claiming its authority has been annulled following a takeover by the Financial Services Authority (OJK).
"The reason is that as the BPA chairman, I no longer have any authority in Bumiputera," Abdul said after a meeting with other BPA members and OJK deputy commissioner for non-bank institution supervision Dumoly Pardede on Tuesday.
As a mutual insurer, Bumiputera's policyholders are the firm's shareholders. The BPA was established to represent more than 6.5 million policyholders.
The OJK's statutory management took over the insurer last October as a result of its dire financial situation, stemming from claims that exceed its asset value.
(Read also: Ailing Bumiputera committed to settling liabilities)
Abdul claimed that there was a violation in the restructuring as all decisions were made without taking the concerns of the BPA, as the policyholders' representative body, into account. He also questioned several asset valuations, which he described as too low.
Previously, two of the seven statutory members also resigned from their positions because of unresolved debates on the insurer's restructuring scheme.
A new BPA chairman is yet to be appointed to replace Abdul. With his withdrawal, only 10 BPA members are left, including former state-owned enterprises minister Sugiharto.
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