THE PRINCIPLE OF PROPORTIONALITY IN RELATION TO INSURANCE AGREEMENTS IN THE FORM OF BANCASSURANCE

Abstract

The bancassurance insurance agreement involves three parties, namely the bank, the insurance company, and the customer, so the principle of proportionality becomes important to ensure a balance of rights and obligations between the bank, the insurance company, and the customer. This research aims to analyze the application of the principle of proportionality in the bancassurance insurance agreement and identify the challenges faced in implementing this principle to ensure a balance of rights and obligations between banks, insurance companies, and customers. This research uses a normative legal research method, with a statutory approach and a conceptual approach. Data collection techniques through literature study of relevant primary, secondary, and tertiary legal materials, as well as data analysis with qualitative analysis techniques. The research results explain that the application of the principle of proportionality in the bancassurance insurance agreement is carried out by ensuring a balance and fairness in the distribution of risk between the insured (customer) and the insurer (insurance company). This is reflected in the determination of the sum insured proportional to the actual value of the insured object, proportional claim payments according to the sum insured and the loss suffered, the obligation to disclose accurate information from the insured, and periodic adjustments to the sum insured to remain proportional to changes in the value of the insured object. This principle aims to prevent over-insurance, under-insurance, and moral hazard as well as ensure fairness in the distribution of risk between the two parties. The main challenges in implementing the principle of proportionality in the bancassurance insurance agreement include determining the appropriate sum insured according to the actual value of the insured object, information asymmetry between the insured and the insurer, potential moral hazard from both parties, complexity in periodically adjusting the sum insured, and the potential for disputes related to the application of the principle of proportionality, especially in terms of differing views on the actual value of the insured object or the proportion of claim payments.