Historical DAI - Dewan Asuransi Indonesia

1. The history of insurance in Indonesia is inseparable from the country's history. To mention just a few of the insurance companies in Indonesia : Samarang Sea -- established in 1816 -- and its contemporaries such as Java Sea, Arjoeno, Vertas, Mercurius. The one considered the oldest is O.L. Mij Boemi Poetera, which was established on February 12, 1912 in Magelang. Another engaged in non-life insurance was NV Indische Lloyd, which later became PT Lloyd Indonesia.
   
   In the course of their history, insurance companies in Indonesia record an organization named Raad van Brandverzekerings Maatschappijen in Nederlandsch Indie as the oldest association of fire underwriters in Indonesia. This organization was established on April 29, 1925. Its original name was Raad van Brandverzekerings Maatschappijen (Mijen) in Nederlandsch Oost Indie. Outside East Indies and the Netherlands, it assumed the name of Council of Fire Insurance Companies of the Dutch East Indies.
   
   
   
2. During the Japanese occupation, the insurance industry did not make any progress. After the Indonesian Independence, an association of underwriters was established on October 28, 1949 called Vereniging van Varia Assuradeuren in Indonesie (Accident Underwriters Association in Indonesia). Later, on July 24, 1953, the Marine Underwriters Association was established (abbreviated to MUAI). These associations were known or referred to as the Three Associations.
   
   In the early years following the Indonesian Independence, the first national insurance association was established on April 20, 1953 under the name of Committee of Indonesian Underwriters. This was a union of national companies in their struggle to face competition from foreign underwriters.
   
   Based on the status, the Government relied on some national underwriters to cover several types of insurance using a pool system. Thus a few such pools were formed : JUBM, Copra Foundation Pool, Bangka Tin Mining Pool and so forth. Subsequent to internal problems within the Copra Foundation Pool, the Committee of Indonesian Insurance Companies was split. Some maintained the Committee and some others formed a Joint Indonesian National Underwriters (GANI). At the initiative of the members, a Congress of Indonesian National Underwriters (KANSI) was held on November 30, 1956.
   
   
   
3. The congress decided to keep the unity and subsequently at a members meeting an Insurance Council of Indonesia (DAI) was established on February 1, 1957. The establishment was followed by liquidation of the Committee and GANI. The Council's functions were enlarged to also cover tariff control, resulting in the winding up of the Three Associations, namely the Raad van Brandverzekerings Maatschappijen in Nederlandsch Indie, Varia Asuradeuren and MUAI. But on November 5, 1959 was established Association of Overseas Underwriters in Indonesia (AOUI). To avoid unhealthy competition, a cooperation was initiated by Insurance Council of Indonesia and AOUI, followed by the establishment of Yayasan Kerjasama Asuransi (YKSA, Council of Insurance Association) on March 14, 1960 to cater for tariff and technical issues.
   
   
   
4. In line with the prevailing political and economic policies at that time, by virtue of Government Regulation (PP) No. 47 year 1963 GPS Asuransi Kerugian (Joint Underwriters of Losses) was established. The existing organizations like DAI, AOUI and YKSA were frozen. Following the establishment of BAMUNAS (National Consultative Board) pursuant to Decree of the Minister for Funds & Forces No. 2/65 a new body was formed, called OPS Asuransi Indonesia (Indonesian Joint Underwriters Organization) covering life and private loss insurance.
   
   The political situation in 1965 changed the structure of insurance organizations and the insurance business. Pursuant to the Decree of the MPRS (Provisional People's Consultative Assembly) No. 28/1967 the BAMUNAS was liquidated. Members of the OPS exclusive of extraordinary and foreign members revitalized the DAI (Insurance Council of Indonesia) on July 12, 1967.
   
   
   
5. DAI (The Council)'s objective to become the sole risk bearer, tariff regulator and means of struggle was accomplished in 1971. DAI became the sole organization for all insurance companies, either life, loss, non-life coverage or reinsurance operating in Indonesia. They are either state-owned, national private or joint venture companies. It is noteworthy that the above insurance companies are loss insurance and do not include life insurance nor reinsurance companies.
   
   DAI's articles of association have been amended several times, the latest amendment being made in the Seventh Congress of DAI on December 16, 1992, which was ratified by the Minister of Justice on June 5, 1993 no. C2-4217 HT.01.06.Th93.
   
   Article 2 of DAI's articles of association stipulates DAI's functions. It reads as follows :
   
   The Insurance Council of Indonesia is the sole union of insurance and reinsurance companies, having its legal seat in Indonesia, is established pursuant to the Indonesian laws and has the following functions :
   
   a. Board of unity and consultation for the interest of insurance
   a. business in Indonesia;
   
   b. Board to determine tariff and standard policies as well as
   a. clauses;
   
   c. Board to help the government in improving and controlling
   a. insurance business.
   
   has the following purpose and objective :
   
   
   1. To create and maintain unity and uniformity by means of establishing closest cooperation among its members and with other agencies, whether dealing with the insurance business or outside of this line.
      
      
   2. To improve the quality of insurance business in Indonesia.
      
      
      
6. In line with the quality improvement of insurance industry in Indonesia, improvement of human resource quality is an aspect of prime importance. To that end the Insurance Council of Indonesia has prepared educational facilities in the form of short courses or tutorial to reach professional ranks, which is organized by the Institute for Insurance Education in Indonesia at the following address :
   
   Pusat Pertokoan dan Perkantor Pulo Mas
   Jl. Perintis Kemerdekaan - Jakarta
   
   Also, to achieve the objective of having an Indonesian Institute of Insurance of its own, through cooperation with the Institute of Management - Economics Faculty of the University of Indonesia it has set up an Indonesian Insurance Academy, at Jl. Salemba Raya No. 4, Jakarta Pusat.