Exoneration Clauses in Insurance Agreements: An Advantage or Disadvantage for Consumers

Abstract

The rampant cases of troubled insurance companies in Indonesia, one of which is caused in addition to default due to the use of exoneration clauses contained in insurance agreements, cannot reach. So it is necessary to analyse more deeply the problem of the use of exoneration clauses so far in insurance agreements whether it is in accordance with the applicable rules or vice versa. This research is a normative legal research using case and concept approaches and supported by other sources of legal materials. The results of the analysis show that the use of exoneration clauses in insurance agreements is actually not allowed because it is detrimental to consumers. The problems that exist so far have a bad impact on consumers because the use of exoneration clauses conveyed in insurance agreements makes consumer equality unbalanced with the insurance industry. In the future, there needs to be a balance and mutual agreement in making an insurance agreement or policy that does not burden consumers and legal dissemination is needed for consumers to understand the essence of law, build legal awareness and foster a legal culture in the environment so as to minimise losses for other legal subjects so that public trust in the insurance industry remains good.