Importance of Natural Disaster Insurance Scheme for Indonesian Society
Saturday (22/10/2016), Cornelius Simanjutak managed to defend his dissertation entitled "Natural Disaster Insurance" in front of the academic session of Faculty of Law UI led by the Dean of the Faculty of Law University of Indonesia (FHUI) Prof. Dr. Topo Santoso, SH, MH
The dissertation is a study of disaster insurance schemes to provide relief and compensation for victims of natural disasters in Indonesia.
In his dissertation, Cornelius argues that Indonesia is very vulnerable to the risks of tectonic and volcanic natural disasters (earthquakes, tsunamis, and volcanic eruptions.
This is because Indonesia lies between three tectonic plates, namely Indo-Australia, Eurasia, and the Pacific, which is on the "Asia Pacific Ring of Fire" ring ring with the 127 most active volcanoes in the world, and the world's three largest archipelagos with 13466 island.
According to Cornelius, there have been many natural disasters from the past until now, and still will happen again in the future. Only time can not be ascertained.
The death toll, injuries and damage, the destruction of residential homes are already millions with enormous economic losses.
This creates problems in the post-disaster natural rehabilitation and reconstruction action for the damaged and destroyed houses, which require a lot of money.
Disaster victims do not have enough money, many are losing their sources of income, while government budget funds are not sufficient to provide assistance and losses.
In the event of a natural disaster, the rehabilitation of the reconstruction of the people's houses can not be done properly and quickly, thus prolonging the suffering of natural disaster victims.
Based on the above, Cornelius conducted a study on seven countries most prone to natural disasters that have implemented a natural disaster insurance scheme.
Using normative legal research methods with qualitative juridical data analysis, Cornelius concluded that the appropriate insurance scheme applied in Indonesia is a disaster-relief insurance scheme that is helpful-help to guarantee every home to the risk of natural disasters.
Reinsurance, he said, can provide support for disaster insurance schemes in Indonesia with reinsurance guarantees from traditional reinsurance markets and catasrophic bonds can provide greater innovative reinsurance insurance through corporate investors in the global capital market, the need for legal insurance reform and disaster mitigation law to realizing disaster insurance scheme in Indonesia.
From his research, Cornelius suggested that it is important to organize a residential natural disaster insurance scheme that is obligatory to help for the risk of earthquakes, tsunamis and volcanic eruptions.
The victims of natural disasters will receive bigger and faster compensation to rebuild their damaged and destroyed homes.
Source: www.ui.ac.id
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