Legal policy of the Indonesia's natural disaster insurance system
A human rights perspective under the 1945 Constitution
DOI:
https://doi.org/10.21831/jc.v22i2.85862Keywords:
constitutional court, human rights, legal policy, insurance, catastropheAbstract
The role of the insurance sector in national economic growth has a very strong correlation and can be utilised for financing schemes for natural disaster management. This study aims to investigate whether insurance, national economic growth, and the utilisation of insurance for natural disaster management have a constitutional correlation with a constitutional law approach. This research is conducted using the doctrinal research method. The doctrinal research method is an analysis of positive law, related cases, and other relevant references in studying a legal issue. This study found that in the constitutional law system, the correlation between catastrophe insurance and national economic growth is closely related to the mandate of Article 33 of the 1945 Constitution, which states that the insurance service sector can be classified as an essential for the lives of many people, so that it must be structured based on the principle of kinship. Therefore, the legal policy of the insurance system in Indonesia must be structured based on the principles of economic democracy, togetherness, equitable efficiency, sustainability, environmental insight, independence, and maintaining a balance of progress and national economic unity. In more specific, the correlation between the utilization of insurance in natural disaster management can be linked to the Articles of Human Rights contained in the 1945 Constitution. So the legal policy of the insurance system, especially catastrophe insurance, should not only provide (economic) benefit for business actors but also involve a public service dimension for society.
References
Abeysinghe, S., & Leppold, C. (2023). Ethical research practice in health and disasters. International Journal of Disaster Risk Reduction, 92, 103728. https://doi.org/10.1016/j.ijdrr.2023.103728
Abraham, K. S & Schwarcz, D. (2022). The limits of regulation by insurance. Indiana Law Journal, 23, 1–68. https://www.repository.law.indiana.edu/ilj/vol98/iss1/5/
Ardyati, R., & Ikrimah, A. (2025). Optimising the national strategy for progressive employment absorption to ensure the rights and responsibilities of citizens in Indonesia. Jurnal Civics: Media Kajian Kewarganegaraan, 22(1), 85-92. https://doi.org/10.21831/jc.v22i1.1282
Ash-Shidiqqi, E. A. (2021). Alternatif strategi pembiayaan asuransi bencana alam di Indonesia. Journal of Governance and Policy Innovation, 1(2), 111-119. https://doi.org/10.51577/jgpi.v1i2.160
Barnes, S., Joshi, S., & Terrell, D. (2023). Disasters and health insurance: Evidence from Louisiana. Economic Modelling, 128, 106516. https://doi.org/10.1016/j.econmod.2023.106516
Basic Law for the Federal Republic of Germany. (2010). Grundgesetz für die Bundesrepublik Deutschland (The Basic Law of Germany). German Federal Government.
Baten, J., Batinti, A., Costa-Font, J., & Radatz, L. (2024). Health insurance and height inequality: Evidence from European health insurance expansions. Socio-Economic Planning Sciences, 93, 101905. https://doi.org/10.1016/j.seps.2024.101905
Bayar, Y, Borozan, D, & Gavriletea, M. D. (2020). Banking sector stability and economic growth in post‐transition European Union countries. International Journal of Finance & Economics, 1(13). https://doi.org/10.1002/ijfe.1829.
Bayar, Y., Dan Gavriletea, M., & Danuletiu, D. C. (2021). Does the insurance sector really matter for economic growth? Evidence from Central and Eastern European countries. Journal of Business Economics and Management, 22(3), 695-713. https://doi.org/10.3846/jbem.2021.14287
Cristea, M., Marcu, N., & Cârstina, S. (2014). The relationship between insurance and economic growth in Romania compared to the main results in Europe–a theoretical and empirical analysis. Procedia Economics and Finance, 8, 226-235. https://doi.org/10.1016/S2212-5671(14)00085-9
Federal Insurance Office (2023). Annual report on the insurance industry completed pursuant to title v of the dodd-frank wall street reform and consumer protection act. United States: Federal Insurance Office (FIO) of the U.S. Department of The Treasury. https://home.treasury.gov/system/files/311/FIO%20Annual%20Report%202023%209292023.pdf
Hasanah, N., Al Farisi, F. S., Maharani, R., & Risakotta, Z. R. (2024, December). Challenges and Opportunities in the Development of the Insurance Industry in Indonesia: A Comprehensive Analysis. In 4th International Conference on Social Sciences and Law (ICSSL 2024) (pp. 747-761). Atlantis Press. https://doi.org/10.2991/978-2-38476-303-0_71
HuiShan, L.. (2019). Insurance development and economic growth. Financial Statistical Journal, 1(02). https://doi.org/10.24294/fsj.v1i4.1057
Hutchinson, T., & Duncan, N. (2012). Defining and describing what we do: doctrinal legal research. Deakin Law Review, 17(1), 83-119. https://doi.org/10.21153/dlr2012vol17no1art70
Hutfils, M. L. (2019). A Human rights-based approach to climate risk insurance. making insurance-related instruments for climate risk management beneficial to the poor and vulnerable. Berlin/Bonn. http://www.germanwatch.org/en/16050
Jinaratana, A., & Permatasari, Y. (2023). Legal protection of policyholders for claim issues insurance coverage based on positive Indonesian law. Asian Journal of Social and Humanities, 1(07), 302-309. https://doi.org/10.59888/ajosh.v1i07.32
Kanon, M., W. (2023). Legal and ethical aspect of double insurance in Indonesia: A literature review. Ultima Management : Jurnal Ilmu Manajemen, 15–24. https://doi.org/10.31937/manajemen.v15i1.3011
Kousky, C., P. Raschky, and E. Michel-Kerjan (2018). “Does federal disaster assistance crowd out flood insurance?” Journal of Environmental Economics and Management. 87. 150-164. https://doi.org/10.1016/j.jeem.2017.05.010
Kuwoto, M. A., Sudarmanti, R., & Utami, A. B. (2024). Construction of political education in learning Pancasila and Citizenship in increasing students' political awareness. Jurnal Civics: Media Kajian Kewarganegaraan, 21(2), 274-283. https://doi.org/10.21831/jc.v21i2.73916
LPPI. (2022). Optimalisasi asuransi kesehatan bencana. Lembaga Pengembangan Perbankan Indonesia.
Mahul, O & White, E. (2020). CLUSTER 6: The economics of disaster risk, risk management, and risk financing (Earthquake Risk Insurance). World Bank. https://www.gfdrr.org/sites/default/files/publication/knowledge-note-japan-earthquake-6-2.pdf
Mariot, E. A. S, Barbas, S, & Nunes, R. (2024). Enforcing the right to health in private health systems through judicialization what can we learn from the scoping review of the cross-National Perspective? Health Policy, 145. https://doi.org/10.1016/j.healthpol.2024.105096
Mol, J. M., Botzen, W. W., & Blasch, J. E. (2020). Risk reduction in compulsory disaster insurance: Experimental evidence on moral hazard and financial incentives. Journal of Behavioral and Experimental Economics, 84, 101500. https://doi.org/10.1016/j.socec.2019.101500
OECD. (2021). Building financial resilience to climate and natural disasters: An OECD framework for the governance of disaster risk financing. OECD Publishing.
Ooms, G, Keygnaert, I, & Hammonds, R. (2024). The right to health: From citizen’s right to human right (and back). Socio-Economic Planning Sciences, 93. https://doi.org/10.1016/j.seps.2024.101880
Patel, S. K., Mukherjee, S., & Nanda, A. (2021). Importance of insurance mechanisms in natural disasters' risk mitigation: A case study in Indiav. Journal of Disaster and Emergency Research. https://doi.org/10.18502/jder.5664
Peleckienė, V., Peleckis, K., Dudzevičiūtė, G., & K Peleckis, K. (2019). The relationship between insurance and economic growth: evidence from the European Union countries. Economic research-Ekonomska istraživanja, 32(1), 1138-1151. https://doi.org/10.1080/1331677X.2019.1588765
Peralta, A., & Scott, J. B. (2024). Does the national flood insurance program drive migration to higher risk areas? Journal of the Association of Environmental and Resource Economists, 11(2), 287-318. https://doi.org/10.7910/DVN/FKX6ZW
Philipo, D. K., & Lubowa, D. (2023). Examining the implementation of insurance law and policies: a study of natural disaster risks, policyholders, and insurance companies in Indonesia. Indon. L. Rev., 13, 56. https://scholarhub.ui.ac.id/ilrev/vol13/iss3/5/
Safitri K.A. (2020). The contribution of life and non-life insurances on ASEAN Economic Growth. Management Science Letters, 9, 957–966. https://doi.org/10.5267/j.msl. 2019.4.009
Soekanto, S. (2007). Pengantar penelitian hukum. UI Press.
Sonymol, K., & Shankar, R. (2022). Healthcare cost reduction and health insurance policy improvement. Value in health regional issues, 29, 93-99. https://doi.org/10.1016/j.vhri.2021.10.001
Surminski, S., & Oramas-Dorta, D. (2014). Flood insurance schemes and climate adaptation in developing countries. International Journal of Disaster Risk Reduction, 7, 154-164. https://doi.org/10.1016/j.ijdrr.2013.10.005
Swardhana, G. M., & Monteiro, S. (2023). Legal policy of state financial losses arrangement in a state-owned enterprise. Bestuur, 11(1), 171-90. https://doi.org/10.20961/bestuur.v11i1.61326
Tumbelaka, I., Dimasqy, D., Yusgiantoro, I. B., & Mardiyyah, M. M. (2021). Does investment portfolio affect insurance failure? Evidence from Indonesia. Otoritas Jasa Keuangan. https://www.ojk.go.id/id/data-dan-statistik/research/working-paper/Documents/OJK_WP.21.05.pdf
UNDP and Insurance and Risk Finance Facility (IRFF). (2022). Inclusive insurance and risk financing in Indonesia: Snapshot and way forward. UNDP Report.
UNDP. (2023). Asuransi inklusif pembiayaan risiko di Indonesia.
van Boom, W. H. (2020). insuring vs. investing in litigation: A comparative legal history of litigation insurance and claim investment. Comparative Legal History, 8(1), 2–26. https://doi.org/10.1080/2049677X.2020.1768255
Wijanto, W. (2022). The regulatory improvement of insurance law reform in order to pursue the legal certainty for the people and the insurance company. Global Legal Review, 3(2), 162–175. https://doi.org/10.19166/glr.v3i2.7433
World Bank. (2014). Financial protection against natural disasters: An operational framework for disaster risk financing and insurance. World Bank.
Yinusa, O., & Akinlo, T. (2013). Insurance development and economic growth in Nigeria, 1986-2010. Journal of Economics and International Finance, 5(5), 218-224. https://doi.org/10.5897/JEIF2013.0498
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Jurnal Civics: Media Kajian Kewarganegaraan
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
The authors agree to transfer the transfer copyright of the article to The Jurnal Civics: Media Kajian Kewarganegaraan effective if and when the paper is accepted for publication.
Authors and other parties are bound to the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License for the published articles, legal formal aspect of journal publication accessibility refers to Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA).
