Document background
The Insurance Termination Letter is a crucial document used in the Indonesian insurance market when either an insurer or policyholder needs to formally end an insurance coverage arrangement. This document is essential for compliance with Indonesian insurance regulations, particularly Law No. 40 of 2014 on Insurance and OJK guidelines. It serves as official documentation of the termination decision, protecting both parties' interests by clearly stating the termination date, reasons, financial implications, and any remaining obligations. The letter must be drafted carefully to ensure all regulatory requirements are met, including proper notice periods and consumer protection provisions under Indonesian law. It's particularly important in scenarios involving policy cancellations, non-renewal decisions, or termination due to breach of policy terms.
