Potential for Vehicle Insurance Claims to Soar Due to Sumatra Disaster

KatadataOTO – Disasters such as floods and landslides that have struck Aceh, North Sumatra, to West Sumatra are believed to affect the insurance business. This is because there is a potential for insurance claims to reach nearly Rp 1 trillion, or more precisely around Rp 967.03 billion, according to data as of December 10, 2025.

Based on a report from the General Insurance Association of Indonesia (AAUI), of that amount, the potential claims for motor vehicle insurance are around Rp 74.50 billion. Meanwhile, for property, the amount is larger, reaching Rp 492.53 billion.

The Financial Services Authority (OJK) has also instructed all insurance companies to simplify the claims process for customers affected by the disaster. And to remain proactive in providing information to policyholders.

"OJK has asked the industry to conduct a stress test to ensure that financial and operational performance is maintained. While also ensuring that policyholders' rights are fulfilled through a claims process that is fast, transparent, yet still in accordance with regulations," he said, as reported by Antara (12/12).

Photo: Screenshot

Although the claims burden is predicted to increase, they are optimistic that the resilience and performance of the national insurance industry will be maintained.

"The industry has prepared itself through reinsurance protection for disaster risks, adequate technical reserves, and capital management that is generally still above the minimum requirements," Ogi affirmed.

Meanwhile, Laurentius Iwan Pranoto, Head of PR Marcomm Event at Asuransi Astra, revealed that there has been an increase in claims. However, he declined to detail the number they have received.

"If you ask whether there is an increase in claims, then of course there is because of the natural disaster. Currently, Asuransi Astra is focused on ensuring the safety and evacuation of customer assets," he told KatadataOTO (12/12).

His party is now in the process of determining vehicle repair costs and assessing the damage. So that customers can receive their rights according to the policy.

"The claim value related to vehicle repair costs still needs further investigation. We need to see the extent of the damage, whether it can be repaired or if it's a total loss," he added.

Photo: Pixabay

However, it should be noted that not all insurance participants can get coverage. This is because damage caused by natural disasters is not included in standard coverage.

They must have an extension of coverage from the initial purchase of the policy.