Insurance Broker Liability Concept as a Profession Which Is Just in Indonesia

Abstract

Insurance brokers are professionals who provide recommendations or represent policyholders in insurance and sharia insurance. The Insurance Law requires that insurance brokerage companies be in the form of limited liability companies that adhere to limited liability, with responsibility for the actions of insurance brokers falling under the principle of vicarious liability. The law states that insurance brokerage companies and reinsurance brokerage companies are responsible for the actions of insurance brokers who provide recommendations to policyholders regarding insurance coverage or closure. This article discusses the liability of insurance brokerage companies and insurance brokers for damages resulting from the negligence and mistakes of insurance brokers. The article adopts a normative juridical research method and uses a statute approach with analogical interpretation and a conceptual approach with systematic and reverse interpretation. The research finds that there is a need for a classification/categorization of worker categories in statutory provisions to provide certainty and legal protection. This classification should at least make a distinction between laborers, ordinary workers, and professional workers. The concept of vicarious liability is no longer relevant for professional workers, as they have a scope of duties, responsibilities, and authorities that differ from those of workers in general. They also receive different wages and rewards. The research suggests a theory of civil liability for the insurance broker profession in the form of compensation based on fault contribution. This theory takes into account the limited liability capabilities of limited liability companies and the principle of proportionality in creating justice. It balances the need for individuals to be fully responsible for their mistakes and negligence with the limited liability of companies.