Financial Services Authority Circular Number 5/SEOJK.05/2022 on Insurance Products Linked to Investment

To:

The Board of Directors of General Insurance Companies; and
The Board of Directors of Sharia Insurance Companies.
At their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 5/SEOJK.05/2022

REGARDING

INSURANCE PRODUCTS LINKED TO INVESTMENT

In relation to the mandate of Article 4 paragraph (2) of Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products (State Gazette of the Republic of Indonesia Year 2015 Number 287, Supplement to the State Gazette of the Republic of Indonesia Number 5770) and Article 7 paragraph (6) of Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 302, Supplement to the State Gazette of the Republic of Indonesia Number 5992), it is necessary to further regulate insurance products linked to investment in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

In this Financial Services Authority Circular Letter, the following terms are meant:

General Insurance Company is a company that conducts general insurance business and/or Sharia general insurance business as referred to in Law Number 40 of 2014 concerning Insurance.
Life Insurance Company is a company that conducts life insurance business and/or Sharia life insurance business as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Company is a general insurance company and a life insurance company as referred to in Law Number 40 of 2014 concerning Insurance.
Sharia Unit is a working unit at the head office of an Insurance Company that functions as the head office of offices outside the head office that conduct business based on Sharia principles.
Sharia Insurance Company is a Sharia general insurance company and a Sharia life insurance company as referred to in Law Number 40 of 2014 concerning Insurance, including the Sharia Unit.
Company is an Insurance Company and a Sharia Insurance Company as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Product Linked to Investment, hereinafter referred to as PAYDI, is an insurance product that provides at least protection against the risk of death and provides benefits referring to the investment results of a fund pool specifically formed for the insurance product, whether expressed in unit form or not.
Insurance Policy is an insurance agreement deed or other document equated with an insurance agreement deed, and other documents that are an inseparable part of the insurance agreement, which are made in writing and contain an agreement between the Company and the policyholder.
Premium is a sum of money determined by the Insurance Company and agreed upon by the policyholder, to be paid based on the insurance agreement or a sum of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits as referred to in Law Number 40 of 2014 concerning Insurance.
Contribution is a sum of money determined by the Sharia Insurance Company and agreed upon by the policyholder to be paid based on the Sharia insurance agreement to obtain benefits from the tabarru' fund and/or participant investment fund and to pay management costs or a sum of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits as referred to in Law Number 40 of 2014 concerning Insurance.
Custodian Bank is a general bank that has obtained approval from the Financial Services Authority to conduct business activities as a custodian.
Policyholder is a party that binds itself based on an agreement with the Insurance Company, Sharia Insurance Company, reinsurance company, or Sharia reinsurance company to obtain protection or management of risk for themselves, the insured, or other participants as referred to in Law Number 40 of 2014 concerning Insurance.
Insured is a party facing risk as regulated in the insurance agreement or reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance.
Participant is a party facing risk as regulated in the Sharia insurance agreement or Sharia reinsurance agreement as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Agent is an individual who works alone or works for a business entity, who acts for and on behalf of the Insurance Company or Sharia Insurance Company and meets requirements to represent the Insurance Company or Sharia Insurance Company in marketing insurance products or Sharia insurance products as referred to in Law Number 40 of 2014 concerning Insurance.
Sub-fund is a fund formed and managed by the Company with a specific investment strategy to provide benefits linked to investment in PAYDI.
Net Asset Value, hereinafter abbreviated as NAV, is the value of assets minus the liabilities of the Sub-fund.
Cash Value is the value of insurance benefits linked to investment that become the right of each Policyholder, Insured, or Participant at a certain time, before calculating costs charged to the Policyholder, Insured, or Participant in connection with fund withdrawal or cancellation/termination of the Insurance Policy.
Trading Day is a day when securities trading is held on the securities exchange, namely Monday to Friday, except if that day is a national holiday or declared as a stock exchange holiday by the securities exchange.
Investment Recipient Group is two or more individuals and/or companies that have a controlling relationship through ownership, management, and/or financial relationships, which receive investment from the Company and/or issue securities owned by the Company.
Related Party is an individual or company that has a controlling relationship with the Company, either directly or indirectly, through ownership, management, and/or financial relationships.

II. CRITERIA FOR COMPANIES THAT CAN MARKET PAYDI

Companies marketing PAYDI must meet the following provisions:

a. have an actuary, namely a person who has obtained FSAI (Fellow of the Society of Actuaries of Indonesia) certification or other equivalent certification recognized by the association;

b. have investment management personnel who meet the requirements:

have passed the exam as an investment manager representative proven by a valid professional certification certificate from a certification body registered with the Financial Services Authority;
have at least 3 (three) years of experience in a managerial position in investment management;
do not hold concurrent positions at the Company and/or other financial service institutions, and do not hold concurrent positions in other functions at the same Company;
act as the person responsible for the investment management function;
are officials directly responsible to the Board of Directors or equivalent; and
have never been subject to license revocation sanctions for investment manager representatives based on capital market legislation in the last 3 (three) years, in the event that the investment management personnel previously worked at a securities company.

c. have adequate information systems, namely capable of supporting PAYDI management activities, at least capable of providing:

coverage illustrations for each Insured or Participant;
daily NAV information and NAV per unit in the event the Sub-fund is expressed in unit form, to be posted on the Company's website;
daily Cash Value information for each Insured or Participant;
Cash Value development reports;
Sub-fund development reports;
financial statements that must be prepared based on statutory regulations and accounting standards applicable in Indonesia; and
information and reports for monitoring PAYDI performance as referred to in Financial Services Authority Regulations concerning insurance products and marketing of insurance products.

d. have resources capable of supporting PAYDI management in marketing, underwriting, administration and accounting, actuarial, finance including investment management, settlement and claim administration, service and complaint handling, risk management, internal audit, compliance, and anti-money laundering and counter-terrorism financing functions, including but not limited to competent human resources.

Companies marketing PAYDI for the first time, in addition to meeting the provisions as referred to in item 1, must meet the following capital provisions:

a. have own capital of at least Rp250,000,000,000.00 (two hundred fifty billion rupiah) for Insurance Companies; and

b. have own capital of at least Rp150,000,000,000.00 (one hundred fifty billion rupiah) for Sharia Insurance Companies.

Companies that have obtained approval from the Financial Services Authority to market PAYDI at the time this Financial Services Authority Circular Letter is established must have own capital in accordance with the equity provisions as regulated in Financial Services Authority Regulations concerning the financial health of insurance and reinsurance companies and Financial Services Authority Regulations concerning the financial health of insurance and Sharia reinsurance companies.
Sharia Insurance Companies that are the result of a spin-off from a Sharia Unit, which previously the Sharia Unit had obtained approval from the Financial Services Authority to market PAYDI with Sharia principles at the time this Financial Services Authority Circular Letter is established, are not categorized as companies marketing PAYDI for the first time, and must have own capital in accordance with the equity provisions as regulated in Financial Services Authority Regulations concerning the financial health of insurance and Sharia reinsurance companies.
Own capital as referred to in items 2, 3, and 4 is equity based on Indonesian Financial Accounting Standards contained in periodic reports submitted by the Company to the Financial Services Authority for the last period.
Companies that do not meet the provisions as regulated in items 1, 2, 3, 4, and/or 5 above must stop marketing PAYDI.

III. PAYDI DESIGN

A. PAYDI Criteria

PAYDI must meet the following criteria:

a. have a proportion of protection against the risk of death and benefits linked to investment;

b. have a specific coverage period; and

c. have a specific investment strategy.

The death risk as referred to in item 1 letter a for:

a. General Insurance Companies is the risk of death due to accidental injury; and

b. Life Insurance Companies is the risk of natural death and/or the risk of death due to accidental injury.

In order to provide benefits linked to investment as referred to in item 1 letter a, the Company must form one or more Sub-funds, which can be expressed in unit form or not.
The specific coverage period provision as referred to in item 1 letter b is at least 5 (five) years.
The specific investment strategy as referred to in item 1 letter c, for each Sub-fund consists of:

a. money market investment strategy, if the Company invests in the entire assets of the Sub-fund in money market instruments, debt securities with a maturity of not more than 1 (one) year, time deposits;

b. fixed income investment strategy, if the Company invests in Sub-fund assets at least 80% (eighty percent) of the NAV of the Sub-fund in the form of debt securities and/or fixed income mutual fund participation units that have underlying assets entirely consisting of securities issued by the Republic of Indonesia and/or securities issued by Bank Indonesia;

c. stock investment strategy, if the Company invests in Sub-fund assets at least 80% (eighty percent) of the NAV of the Sub-fund in the form of equity securities;

d. mixed investment strategy, if the Company invests in Sub-fund assets by employing money market investment strategy, fixed income investment strategy, and/or stock investment strategy with a composition of each less than 80% (eighty percent) of the NAV of the Sub-fund;

e. Sharia money market investment strategy, if the Company invests in the entire assets of the Sub-fund in money market instruments, Sharia securities with a maturity of not more than 1 (one) year, Sharia time deposits;

f. Sharia fixed income investment strategy, if the Company invests in Sub-fund assets at least 80% (eighty percent) of the NAV of the Sub-fund in the form of Sharia securities and/or Sharia fixed income mutual fund participation units that have underlying assets entirely consisting of securities issued by the Republic of Indonesia and/or securities issued by Bank Indonesia;

g. Sharia stock investment strategy, if the Company invests in Sub-fund assets at least 80% (eighty percent) of the NAV of the Sub-fund in the form of Sharia equity securities;

h. Sharia mixed investment strategy, if the Company invests in Sub-fund assets by employing money market investment strategy, fixed income investment strategy, and/or stock investment strategy with a composition of each less than 80% (eighty percent) of the NAV of the Sub-fund; or

i. other investment strategies, after first obtaining approval from the Financial Services Authority while still meeting provisions regarding types of investments from PAYDI as referred to in Financial Services Authority Regulations concerning the financial health of insurance and reinsurance companies and Financial Services Authority Regulations concerning the financial health of insurance and Sharia reinsurance companies.

B. Insurance Sum Assured or Sharia Insurance Benefit Value for Death Risk

The size of protection benefits against the risk of death as referred to in letter A item 1 is expressed in the form of insurance sum assured or Sharia insurance benefit.
The insurance sum assured value or Sharia insurance benefit value for death risk for Insurance Policies in rupiah currency is at least:

a. the greater value between Rp100,000,000.00 (one hundred million rupiah) and 125% (one hundred twenty-five percent) of the Premium or Contribution lump sum, for Insurance Policies with lump sum Premium or Contribution payment; or

b. the greater value between Rp100,000,000.00 (one hundred million rupiah) and 5 (five) times the annual Premium or Contribution, for Insurance Policies with periodic Premium or Contribution payment.

The insurance sum assured value or Sharia insurance benefit value for death risk for Insurance Policies in foreign currency is at least:

a. the greater value between Rp500,000,000.00 (five hundred million rupiah) and 125% (one hundred twenty-five percent) of the Premium or Contribution lump sum, for Insurance Policies with lump sum Premium or Contribution payment; or

b. the greater value between Rp500,000,000.00 (five hundred million rupiah) and 5 (five) times the annual Premium or Contribution, for Insurance Policies with periodic Premium or Contribution payment.

The insurance sum assured value or Sharia insurance benefit value for death risk as referred to in items 2 and 3 is the sum assured or Sharia insurance benefit amount after deducting sum assured for additional insurance products whose benefits reduce the sum assured or Sharia insurance benefit for death risk in PAYDI (accelerated death benefit rider).
Premium or Contribution as referred to in items 2 and 3 does not include Premium or Contribution specifically intended for adding Cash Value (top-up Premium or Contribution).

C. Cash Value

The size of benefits linked to investment as referred to in letter A item 1 is determined based on Cash Value at a certain time.
The Company cannot provide guarantees, specific targets, and/or similar items regarding investment results and/or Cash Value.
Cash Value for PAYDI must meet the following provisions:

a. for PAYDI having Sub-funds expressed in unit form, determined based on the number of units and NAV per unit for the relevant Sub-fund at a certain time; and

b. for PAYDI having Sub-funds expressed in non-unit form, determined based on the portion of Premium or Contribution allocated for the formation of Cash Value, plus fund development results, and minus costs charged in accordance with Insurance Policy provisions.

The surrender value of PAYDI Insurance Policies is at least equal to the Cash Value as referred to in item 3 at the time of termination of the Insurance Policy by the Policyholder, Insured, or Participant, minus costs in connection with the termination of the Insurance Policy in accordance with provisions in the Insurance Policy.

D. Insurance Policy Provisions for PAYDI

Insurance Policies for PAYDI must not contain guarantees, specific targets, and/or similar items regarding investment results and/or Cash Value.
Insurance Policies for PAYDI must meet provisions regarding Insurance Policies as regulated in Financial Services Authority Regulations concerning insurance products and marketing of insurance products and must at least contain the following provisions:

a. the method of cancelling the Insurance Policy during the free look period, as well as the amount of funds returned and the time of fund return to the Policyholder, Insured, or Participant in the event of cancellation of the Insurance Policy during the free look period;

b. the name of the Sub-fund, investment strategy, and investment allocation proportion from the Sub-fund;

c. formation of Sub-funds, including procedures and timing:

allocation of Premium or Contribution for Sub-fund investment;
allocation of investment results for each Sub-fund;
charging of costs for each Sub-fund, including the amount of costs;
calculation of NAV; and
calculation of NAV per unit for Sub-funds expressed in unit form.

d. formation of Cash Value, including procedures, timing, and NAV or NAV per unit used as reference in:

allocation of Premium or Contribution for the formation of Cash Value;
charging of costs on Premium or Contribution and Cash Value, including the amount of costs;
Sub-fund switching;
partial withdrawal of Cash Value;
full withdrawal of Cash Value;
allocation of investment results to each Insured or Participant for PAYDI expressed in non-unit form; and
calculation of Cash Value balance for each Insured or Participant.

e. the amount, method, timing, and duration of Premium or Contribution payment;

f. all costs charged during the coverage or participation period, including type, amount, method of charging, timing of charging, and duration of charging such costs;

g. the method of calculating the size of benefits linked to investment, which can be received by the Policyholder, Insured, or Participant in the event of fund withdrawal or termination of the Insurance Policy;

h. the rights of the Policyholder, Insured, or Participant to:

choose 1 (one) or more Sub-funds, in the event PAYDI has more than 1 (one) Sub-fund;
switch funds from one Sub-fund to another, in the event PAYDI has more than 1 (one) Sub-fund; and
not pay Premium or Contribution in a certain period (premium/contribution holiday) upon request or approval of the Policyholder, Insured, or Participant, along with the procedure for implementation and its consequences, in the event Premium or Contribution is paid periodically.

i. additional features owned by PAYDI and requirements or criteria to obtain such features, if any; and

j. costs charged to the Policyholder, Insured, or Participant in the event the Policyholder does not cancel the Insurance Policy after the Premium or Contribution payment period ends.

The waiting period in PAYDI is only applied to the Insured or Participant if the Insured or Participant has:

a. chosen not to undergo a medical check-up in accordance with underwriting provisions; and

b. understood the consequences of the waiting period.

Provisions regarding Premium or Contribution holiday in PAYDI can only be applied upon request by the Policyholder, Insured, or Participant at most 30 (thirty) calendar days before the Premium or Contribution holiday takes effect. Premium or Contribution holiday is a condition where the Policyholder, Insured, or Participant does not make periodic Premium or Contribution payments as established in the Insurance Policy, but coverage or participation remains valid and the Company still charges all or part of the costs in accordance with Insurance Policy provisions.

E. Additional Features in PAYDI

In the event the Company markets PAYDI providing additional features, the Company must:

a. calculate the benefits of additional features in setting Premium or Contribution;

b. calculate the benefits of additional features in forming reserves or technical provisions; and

c. have an information system capable of identifying Insured or Participants who have met the criteria to obtain additional feature benefits.

Additional features as referred to in item 1 include, among others, loyalty bonus, top-up Premium or Contribution bonus, and administrative fee return bonus in the event specific criteria or conditions contained in the Insurance Policy are met.

IV. PAYDI ASSET AND LIABILITY MANAGEMENT

A. General

The Company must record and report assets and liabilities for each Sub-fund separately from other assets and liabilities owned or managed by the Company.
The Company must apply investment governance referring to the Financial Services Authority Regulation regarding good corporate governance for insurance companies, including having and implementing investment policies and strategies for PAYDI.
In the event PAYDI offers Sub-fund choices, the Company must allocate investments from each Policyholder, Insured, or Participant according to the Sub-fund selected by the Policyholder, Insured, or Participant.
In the event the Company has PAYDI in a foreign currency, the Company must apply effective risk management against exchange rate risk on liabilities in foreign currency.

B. Adequacy and Allocation of Premiums or Contributions

In order to maintain the continuity of coverage or participation, the Company must:

a. set Premiums or Contributions that are sufficient to pay all costs charged to the Policyholder and to form Cash Value, throughout the insurance period;

b. conduct periodic evaluations of the adequacy of Premiums or Contributions and Cash Value to pay all costs throughout the insurance period and to provide Cash Value;

c. evaluate the adequacy of Premiums or Contributions and Cash Value to pay all costs throughout the insurance period and to provide Cash Value, at least when the Policyholder will:

add additional insurance products (riders);
take a Premium or Contribution holiday;
increase the amount of coverage; and/or
withdraw Cash Value.

The Company must allocate the portion of Premiums or Contributions for the formation of Cash Value, at least:

a. for each basic Premium or Contribution paid periodically:

Payment Year	Premium or Contribution	Minimum Limit of Basic Premium or Contribution Allocated for Cash Value Formation
Year 1 to Year 3	60% (sixty percent) of the periodic basic Premium or Contribution.
Year 4 to Year 6	80% (eighty percent) of the periodic basic Premium or Contribution.
Year 7 to Year 10	95% (ninety-five percent) of the periodic basic Premium or Contribution.
Year 11 and onwards	100% (one hundred percent) of the periodic basic Premium or Contribution.

Basic Premium or Contribution is the Premium or Contribution required to obtain coverage/participation benefits from the basic insurance product and coverage/participation benefits from additional insurance products (riders) listed in the Insurance Policy.

b. for each single Premium or Contribution, regular top-up Premium or Contribution, and single top-up Premium or Contribution, the portion allocated for Cash Value formation is at least 95% (ninety-five percent) of such Premium or Contribution.

C. Investment Strategy

Insurance Companies may market PAYDI that has Sub-funds with investment strategies as referred to in Roman numeral III letter A number 5 letter a to letter i.
Sharia Insurance Companies may market PAYDI that has Sub-funds with investment strategies as referred to in Roman numeral III letter A number 5 letter e to letter i.
In the event the Company forms a Sub-fund with other investment strategies as referred to in Roman numeral III letter A number 5 letter i, the Company must ensure that the Custodian Bank can account for all underlying investments of such Sub-fund.
For Insurance Companies, the name of the Sub-fund from PAYDI must:

a. contain words that characterize its investment strategy so as not to result in different interpretations of its investment strategy; and

b. not use the word "syariah" or other synonymous words that could lead to the interpretation that such PAYDI is a sharia insurance product.

For example, a Sub-fund with a money market investment strategy uses the words money market or pasar uang; for a Sub-fund with a fixed income investment strategy, the words fixed income or bonds are used.

For Sharia Insurance Companies, the name of the Sub-fund from PAYDI must:

a. contain words that characterize its investment strategy so as not to result in different interpretations of its investment strategy; and

b. use the word "syariah" or other synonymous words to indicate that such PAYDI is a sharia insurance product.

For example, a Sub-fund with a money market investment strategy uses the words sharia money market or pasar uang syariah; for a Sub-fund with a fixed income investment strategy, the words sukuk or pendapatan tetap syariah are used.

Investment strategies must be evaluated periodically at least once a year and whenever there are changes in internal and external conditions that can significantly impact the investment performance of PAYDI, and the results of such evaluations must be documented.
The implementation of investment strategies and investment performance on PAYDI must be evaluated by the investment function and discussed together with the investment committee, conducted periodically at least once every 3 (three) months and recorded in the minutes.

D. Implementation of Investment Strategy

The implementation of investment strategies on PAYDI is carried out through investment placement of Sub-fund assets by the Insurance Company.
Investment placement of Sub-fund assets by the Insurance Company is carried out by meeting the provisions regulated in the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies and this Financial Services Authority Circular.
Investment placement of Sub-fund assets by Companies with a joint venture legal entity status is carried out by meeting the provisions regulated in the Financial Services Authority Regulation regarding the financial health of insurance companies in the form of joint venture legal entities and this Financial Services Authority Circular.
Investment placement of Sub-fund assets by Sharia Insurance Companies is carried out by meeting the provisions regulated in the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies with sharia principles and this Financial Services Authority Circular.
Investment placement of Sub-fund assets must be in accordance with the investment strategy of each respective Sub-fund.
Investment placement of Sub-fund assets at all times must meet the following limits:

a. placement in all Related Parties is at most 10% (ten percent) of the total NAV of each Sub-fund; and

b. placement in one party or one Group of Investment Recipients, which is not a Related Party, is at most 25% (twenty-five percent) of the total NAV of each Sub-fund.

The investment placement limits as referred to in number 6 do not apply to investment placements in the form of securities issued by the Republic of Indonesia or Bank Indonesia, or mutual funds that have underlying investments entirely consisting of securities issued by the Indonesian Government or Bank Indonesia.
Investment placement of Sub-funds in the form of mutual funds can only be placed in mutual funds that have underlying assets entirely consisting of securities issued by the Republic of Indonesia and/or securities issued by Bank Indonesia.
Investment placement of Sub-funds abroad can only be done for PAYDI Insurance Policies in foreign currency.
Related Parties include:

a. individuals or companies that are controllers of the Company;

b. legal entities where the Company acts as the controller of such legal entity;

c. companies in the event that individuals or companies as referred to in letter a act as controllers;

d. members of the Board of Directors, members of the Board of Commissioners, or equivalents, and executive officials of the Company;

e. parties having a family relationship due to marriage or descent up to the second degree, horizontally or vertically:

from individuals who are controllers of the Company as referred to in letter a; and/or
from members of the Board of Directors and/or members of the Board of Commissioners or equivalents at the Company as referred to in letter d;

f. members of the Board of Directors and/or members of the Board of Commissioners or equivalents at:

companies as referred to in letter a and/or letter c; and/or
legal entities as referred to in letter b.

g. companies that have members of the Board of Directors and/or members of the Board of Commissioners or equivalents who are members of the Board of Commissioners or equivalents at the Company;

h. companies where 50% (fifty percent) or more of the members of the Board of Directors and/or members of the Board of Commissioners or equivalents are directors and/or commissioners or equivalents at companies as referred to in letter a, letter b, and/or letter c;

i. companies that:

members of the Board of Directors, members of the Board of Commissioners, or equivalents, and/or executive officials of the Company as referred to in letter d act as controllers; and
members of the Board of Directors and/or members of the Board of Commissioners or equivalents from parties as referred to in letter a, letter b, and/or letter c act as controllers.

j. collective investment contracts where the Company and/or parties as referred to in letter a to letter i own 10% (ten percent) or more of the shares in the investment manager managing such collective investment contract, except in the event that such collective investment contract has underlying assets entirely consisting of securities issued by the Republic of Indonesia and securities issued by Bank Indonesia;

k. companies that have financial relationships with the Company and/or parties as referred to in letter a to letter i;

l. investment recipients who are individuals or companies that have financial relationships through providing guarantees to parties as referred to in letter a to letter k;

m. investment recipients that have financial relationships through guarantees provided by parties as referred to in letter a to letter k; and

n. other companies in which there is an interest in the form of share ownership of 10% (ten percent) or more individually or jointly, from parties as referred to in letter e.

Executive officials as referred to in number 10 letter d and letter i are officials who are directly responsible to the Board of Directors or equivalents, or have significant influence over the Company's policies and/or operations, including division heads, branch heads, heads of risk management units, heads of compliance units, and heads of internal audit units.
Controllers as referred to in number 10 letter a in the event that individuals or companies directly or indirectly:

a. own 10% (ten percent) or more of the Company's shares individually or jointly;

b. have option rights or other rights to own shares which, if exercised, cause such party to control and/or own 10% (ten percent) or more of the Company's shares individually or jointly;

c. cooperate or take aligned actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other parties so that jointly they control and/or own 10% (ten percent) or more of the Company's shares;

d. cooperate or take aligned actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other parties so that jointly they have option rights or other rights to own shares, which if exercised cause such party to control and/or own 10% (ten percent) or more of the Company's shares jointly;

e. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors or equivalents at the Company;

f. have the ability to determine (controlling influence) the Company's strategic policies;

g. control 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of the Company's shares; and/or

h. exercise control over controllers as referred to in letter a and letter g.

Controllers as referred to in number 10 letter b in the event that individuals or companies directly or indirectly:

a. own 10% (ten percent) or more of other companies' shares individually or jointly;

b. have option rights or other rights to own shares which, if exercised, cause such party to control and/or own 10% (ten percent) or more of other companies' shares individually or jointly;

c. cooperate or take aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they control and/or own 10% (ten percent) or more of other companies' shares;

d. cooperate or take aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they have option rights or other rights to own shares, which if exercised cause such party to control and/or own 10% (ten percent) or more of other companies' shares jointly;

e. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors or equivalents of other companies;

f. have the ability to determine (controlling influence) the strategic policies of other companies;

g. control 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of other companies' shares; and/or

h. exercise control over controllers as referred to in letter a and letter g.

Controllers as referred to in number 10 letter c and letter i in the event that individuals or companies directly or indirectly:

a. own 10% (ten percent) or more of other companies' shares and are the largest share ownership portion;

b. own individually or jointly 25% (twenty-five percent) or more of other companies' shares;

c. have option rights or other rights to own shares which, if exercised, cause such party to control and/or own shares of other companies as referred to in letter a or letter b;

d. cooperate or take aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they control and/or own shares of other companies as referred to in letter a or letter b;

e. cooperate or take aligned actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they have option rights or other rights to own shares, which if exercised cause such party to control and/or own jointly shares of other companies as referred to in letter a or letter b;

f. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors or equivalents of other companies; and/or

g. have the ability to determine (controlling influence) the operational policies or financial policies of other companies.

Investment recipient parties that have control relationships with the Company are excluded from the definition of Related Parties as long as the control relationship is solely caused by direct ownership by the central government in such party and in the Company.
Ownership, management, and/or financial relationships in the Group of Investment Recipients include:

a. an investment recipient is a controller of another investment recipient;

b. 1 (one) same party is a controller of several investment recipients;

c. 50% (fifty percent) of the members of the Board of Directors and/or members of the Board of Commissioners or equivalents of an investment recipient become members of the Board of Directors and/or members of the Board of Commissioners or equivalents at another investment recipient; and/or

d. An investment recipient has a financial relationship with another investment recipient.

The determination of controllers as referred to in number 16 letter a and letter b follows the determination of controllers as regulated in number 13.
Investment recipient parties are not treated as a group of investment recipients as long as the control relationship is solely caused by direct ownership by the central government in such companies.
In the event the Company or investment recipient parties have control relationships, other than direct central government ownership as referred to in number 15 and number 18, investment placements to such parties are calculated as investment placements to Related Parties or Groups of Investment Recipients.
Financial relationships are analyzed from several factors, namely:

a. there is financial assistance from one party to another party with requirements that cause the party providing financial assistance to have the ability to determine (controlling influence) the strategic policies of the other party receiving the financial assistance;

b. there is a significant business chain linkage in the business operations of one party with another party so that there is dependency between one party and another party resulting in:

one party being unable to easily transfer business transactions to the other party; and
the inability to easily transfer business transactions causing the cash flow of one party to experience significant disruption so as to experience difficulties in meeting obligations; and/or

c. there is credit risk transfer through guarantees where the guarantor will take over part or all of the financial risks from the guaranteed party.

Financial relationships as referred to in number 10 and number 16 do not include:

a. investment placements in one party;

b. the provision of guarantees by insurance companies, reinsurance companies, or guarantee companies to parties in accordance with the business scope of insurance companies, reinsurance companies, or guarantee companies; and

c. the provision of guarantees by the central government.

The detailed list of Related Parties and Groups of Investment Recipients must be accounted for by the Company.
The detailed list of Related Parties and Groups of Investment Recipients must be reported to the Financial Services Authority:

a. monthly as part of the Company's monthly report; and

b. whenever the Financial Services Authority requests the Company to submit the detailed list of Related Parties, using the format as contained in Appendix I which is an integral part of this Financial Services Authority Circular.

In the placement of Sub-fund assets, investment transfers from one Sub-fund to another Sub-fund managed by the Company are not allowed.

E. Investment Placement Compliance

In the event that Sub-fund investment placements are not in accordance with the investment strategies as referred to in letter D number 5 and/or do not meet investment limits as referred to in letter D number 6, the Company must adjust the investment portfolio composition in the Sub-fund to the investment strategies and investment limits within a time frame:

a. at the latest 10 (ten) Business Days since the occurrence of investment strategy and/or investment limit non-compliance caused by transactions conducted by the Company; and

b. at the latest 90 (ninety) Business Days since the occurrence of investment strategy and/or investment limit non-compliance in the event that such non-compliance is not caused by transactions conducted by the Company.

F. NAV Calculation

The calculation of NAV for each Sub-fund, whether denominated in units or not, is conducted every Business Day by the Custodian Bank based on an agreement between the Company and the Custodian Bank.
NAV per unit in Sub-funds denominated in units must meet the following provisions:

a. the calculation of NAV per unit is conducted every Business Day by the Company;

b. at the time of the initial formation of the Sub-fund, NAV per unit is set at Rp1,000.00 (one thousand rupiah) for PAYDI in rupiah or 1 (one) for PAYDI in foreign currency; and

c. each Sub-fund can only have 1 (one) NAV per unit on every NAV calculation day.

The valuation of Sub-fund assets in the form of investments and non-investments from Insurance Companies refers to the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies.
The valuation of Sub-fund assets in the form of investments and non-investments from Sharia Insurance Companies refers to the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies with sharia principles.
The valuation of Sub-fund assets in the form of investments and non-investments from Companies with a joint venture legal entity status refers to the Financial Services Authority Regulation regarding the financial health of insurance companies in the form of joint venture legal entities.

G. Costs

Costs that cannot be charged directly to Policyholders, Insured, or Participants include:

a. marketing costs, including advertising, printing, and marketing media distribution costs;

b. expert service costs; and

c. other operational costs for the general management of the Company.

Costs that can be borne by the Policyholder, Insured, or Participant include:

a. insurance costs for the basic product; b. additional insurance product costs (riders), if any;
c. acquisition costs;
d. insurance policy administrative costs; e. costs for transferring from one Sub-fund to another; f. partial withdrawal costs; g. cancellation or termination costs of the Insurance Policy; and/or

h. other costs directly related to the Insurance Policy and listed in the Insurance Policy.

Costs that can be charged to the Sub-fund include costs directly charged in the management of the Sub-fund, including investment management costs, tax burdens, custodian costs, and account administrative costs.
Costs that can be imposed when the Policyholder, Insured, or Participant cancels the Insurance Policy during the policy review period (free look period) are the amount of stamp duty costs, administrative costs related to the issuance and delivery of the Insurance Policy, health examination costs and/or survey costs (if any), premiums or risk contributions that have already run, and investment losses (if any).
In the event that the Policyholder, Insured, or Participant does not cancel the coverage or participation after the premium or contribution payment period has ended, the Policyholder, Insured, or Participant may be charged costs by reducing the Cash Value, in accordance with the Insurance Policy.

H. Storage, Recording, and Bookkeeping

The Company is required to account for all assets sourced from PAYDI at the Custodian Bank.
The Custodian Bank as referred to in item 1 is prohibited from having an affiliation with the Company, except where such affiliation arises from ownership or capital participation by the State of the Republic of Indonesia.
Accounts in the name of the Company at the Custodian Bank must be segregated for each Sub-fund.
All bookkeeping and important records must be stored and maintained in accordance with the duties and responsibilities of the Company based on the Insurance Policy, relating to:

a. insurance closure for each Insured or Participant, including the payment of Premiums or Contributions and insurance benefits; b. reports related to PAYDI as regulated in provisions regarding the form and structure of periodic reports for insurance companies; and
c. Investment management of PAYDI;

for a minimum period of 5 (five) years after the end of the coverage or participation, unless otherwise required by other laws and regulations regarding the storage of Company documents.

I. Custodian Service Usage Agreement

The accounting of all assets sourced from PAYDI as referred to in letter H item 1 is based on a custodian service usage agreement between the Company and the Custodian Bank.
The agreement between the Company and the Custodian Bank as referred to in item 1:

a. is made in writing in the Indonesian language or, if necessary, the cooperation agreement can be made in a foreign language alongside the Indonesian language; b. meets regulations in the insurance sector related to PAYDI management concerning the function of the Custodian Bank as regulated in the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies, the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies with Sharia principles, and this Financial Services Authority Circular, and must at least contain:

identity of each party;
rights and obligations of each party;
responsibilities and duties of each party;
provisions regulating that the Custodian Bank accounts for Sub-fund assets in the name of the Company separately for each Sub-fund, including the calculation of NAV for each Sub-fund conducted every Trading Day, in accordance with the Company's requests or instructions and legal regulations, and taking necessary actions related to the accounting of said assets;
remuneration for services provided by each party;
duration of the agreement; and
provisions for the termination of the agreement.

Based on the custodian service usage agreement, the Sub-fund accounting performed by the Custodian Bank must at least include:

a. providing safekeeping and custodian services for Sub-fund assets in the form of tradable and transferable securities and accounting services related to all Sub-fund assets; b. recording Sub-fund assets in the name of the Company for each Sub-fund in accordance with legal regulations and taking necessary actions related to the recording of said assets; and
c. calculating the NAV of each Sub-fund conducted every Trading Day and delivering it to the Company.

In entering into a custodian service usage agreement with the Custodian Bank, the Company must conduct:

a. an assessment of the suitability of the Custodian Bank; and b. monitoring and evaluation of the performance of the Custodian Bank;

in accounting for PAYDI assets.

V. MARKETING OF PAYDI

A. General

Companies marketing PAYDI must meet marketing regulations as regulated in the Financial Services Authority Regulation regarding insurance products and marketing of insurance products, the Financial Services Authority Circular regarding insurance product marketing channels, and this Financial Services Authority Circular.
In the marketing of PAYDI, information openness to the Policyholder, Insured, or Participant must be prioritized by the Company both before and after the PAYDI Insurance Policy is issued, including regarding the rights and obligations of the parties, terms and conditions of PAYDI, and services related to PAYDI.
In every PAYDI marketing activity, the Company must emphasize the explanation that PAYDI is an insurance product intended to provide protection benefits against risks, as well as provide explanations regarding investment-linked benefits in a balanced manner between potential investment returns and investment risks.
In the marketing of PAYDI, the Company must ensure:

a. the suitability of PAYDI and Sub-funds with the needs, capabilities, and risk profile of prospective Policyholders, Insured, or Participants; b. the understanding of prospective Policyholders, Insured, or Participants regarding the PAYDI being marketed; and
c. the sufficiency of data, information, and documents required for the underwriting process.

Premiums or Contributions may only be accepted by the Company if the Company has ensured that the insurance application for the Insured or Participant is accepted based on the Company's underwriting regulations.
In conducting PAYDI marketing:

a. the Company's explanation regarding benefits, costs, risks of the offered product, and additional features if any; and b. the prospective policyholder's understanding statement as contained in Appendix II which is an integral part of this Financial Services Authority Circular.

must be documented in the form of video and/or audio recordings properly.

Documentation in the form of video and/or audio recordings as referred to in item 6 must be verified, stored, and maintained in accordance with the Company's policies so that the documentation can be used as evidence in the event of a dispute.
After the issuance of the PAYDI policy, a confirmation (welcoming call) must be conducted by the Company to the Policyholder, Insured, or Participant regarding the suitability of the product and the understanding of the PAYDI purchased by the Policyholder, Insured, or Participant.
Information regarding the investment management of PAYDI must be provided by the Company, at least in the form of:

a. Sub-fund performance reports (fund fact sheet); b. publication of NAV for each Sub-fund;
c. Cash Value development reports; and
d. notification of Cash Value balances and details of underlying Sub-fund investment assets upon request by the Policyholder, Insured, or Participant.

In the event that the Company will offer additional insurance products (riders) for PAYDI where the insurance costs are charged to the Cash Value, the offer of additional insurance products can only be made based on the Company's analysis that the Cash Value is sufficient to bear costs related to the basic insurance product and additional insurance products until the end of the insurance contract while maintaining the availability of Cash Value.
Additional insurance products (riders) that can be offered by General Insurance Companies are insurance products for individuals in the lines of business of health insurance, personal accident insurance, motor vehicle insurance, and/or property insurance.

B. Suitability of PAYDI with the Needs and Risk Profile of Prospective Policyholders, Insured, or Participants

In order to ensure the suitability of the PAYDI purchased and the Sub-fund selected with the needs, capabilities, and risk profile as referred to in letter A item 4, the Company must:

a. conduct an assessment of:

the needs and capabilities of prospective Policyholders, Insured, or Participants (consumer need assessment), at least:

a) the need for the type of insurance benefits, sum insured, and duration of coverage or participation selected; b) the ability to pay Premiums or Contributions and bear costs, including the payment period for Premiums or Contributions and the imposition of costs; and

the risk profile, at least investment experience, understanding of the type of instruments and investment risks, risk appetite, level of risk tolerance, investment objectives, and investment duration of prospective Policyholders, Insured, or Participants, as well as the type of investment selected by prospective Policyholders, Insured, or Participants.

b. ensure that prospective Policyholders, Insured, or Participants have understood the risks related to PAYDI and the selected Sub-fund;
c. ensure that the PAYDI and Sub-fund selected by the Policyholder, Insured, or Participant have matched the assessment results as referred to in letter a, and have:

obtained approval from prospective Policyholders, Insured, or Participants; or
matched the request from prospective Policyholders, Insured, or Participants; and

d. ensure that PAYDI in foreign currency can only be selected by Policyholders, Insured, or Participants who have already had an understanding of foreign exchange rate risks proven by owning a bank account in foreign currency.

Standard policies and procedures for implementing the process of assessing the suitability of PAYDI with the needs and risk profile of prospective Policyholders, Insured, or Participants must be owned, applied, and developed by the Company, at least covering:

a. the implementation of identification and determination of criteria that become the target marketing of PAYDI, including age, dependents, occupation, income, regular expenses, and determination of risk profile categories; b. the collection of information regarding needs, capabilities, and risk profiles;
c. the implementation of evaluation of the assessment of needs, capabilities, and risk profiles based on criteria as referred to in letter a and information as referred to in letter b;
d. the determination of product specifications and Sub-fund choices that match the needs, capabilities, and risk profiles; and e. the implementation of documentation of the assessment of needs, capabilities, and risk profiles.

Copies of proof of approval for PAYDI and Sub-funds as referred to in item 1 letter c must be delivered to prospective Policyholders, Insured, or Participants.

C. Understanding of Prospective Policyholders, Insured, or Participants

In order to ensure the understanding of prospective Policyholders, Insured, or Participants as referred to in letter A item 4 letter b, the Company must at least:

a. provide product and service information summary documents (RIPLAY) general version, personal version RIPLAY containing illustrations, and Sub-fund performance reports (fund fact sheet); b. provide clear, accurate, and complete explanations to prospective Policyholders, Insured, or Participants regarding the PAYDI being marketed, at least explanations of the information contained in the documents as referred to in letter a;
c. conduct an assessment of the understanding of prospective Policyholders, Insured, or Participants regarding important information concerning PAYDI, including features, costs, and product risks based on the PAYDI understanding statement using the format as contained in Appendix II which is an integral part of this Financial Services Authority Circular;
d. if there is a signature in the "No" column or no signature in both columns of the PAYDI understanding statement as referred to in letter c and the prospective Policyholder, Insured, or Participant still intends to purchase PAYDI, the Company must explain again regarding the terms and conditions of PAYDI to the prospective Policyholder, Insured, or Participant and ask the prospective Policyholder, Insured, or Participant to fill out the PAYDI understanding statement again; and e. reject the application for coverage or participation if there is still a signature in the "No" column or no signature in both columns of the PAYDI understanding statement as referred to in letter c.

The understanding statement as referred to in item 1 letter c must be signed by:

a. the Policyholder, Insured, or Participant for individual policies; or b. the Policyholder and Insured, or Participant for group policies.

Copies of the understanding statement as referred to in item 1 letter c must be delivered to:

a. the Policyholder, Insured, or Participant for individual policies; or b. the Policyholder and Insured, or Participant for group policies.

D. Implementation of Confirmation (Welcoming Call)

Confirmation (welcoming call) as referred to in letter A item 8 is conducted during the policy review period (free look period).
In the implementation of confirmation (welcoming call), the Company delivers questions and/or explanations regarding at least:

a. the Policyholder, Insured, or Participant has received the Insurance Policy in accordance with the submitted application; b. the Policyholder, Insured, or Participant has received explanations from the marketer regarding the terms and conditions of PAYDI, at least regarding the information contained in RIPLAY;
c. the Policyholder, Insured, or Participant has filled out the form:

assessment of needs, capabilities, and risk profile;
PAYDI understanding statement; and
insurance application;

in accordance with the actual conditions and understands the consequences if the data provided does not match the actual conditions.

d. the Policyholder, Insured, or Participant understands that:

the product purchased is PAYDI;
product requirements match the Insurance Policy which is a contract document between the Company and the Policyholder, Insured, or Participant;
the method, time, and amount of Premiums or Contributions that must be paid by the Policyholder, Insured, or Participant;
consequences if the Policyholder, Insured, or Participant does not pay Premiums or Contributions on time;
consequences if the Policyholder, Insured, or Participant cancels or terminates the Insurance Policy, either during or after the policy review period (free look period);
the amount of Premiums or Contributions allocated for investment;
costs imposed during the coverage or participation period including acquisition costs, risk Premiums or Contributions (insurance costs), and administrative costs;
investments are placed in capital market and/or money market instruments that have the risk of investment decline/loss;
risk protection benefits can only be obtained if a risk occurs as regulated in the Insurance Policy;
investment benefits that are the rights of the Insured or Participant are equal to the Cash Value balance minus withdrawal costs, and in certain conditions there may be no Cash Value balance; and
there are excluded risks and/or waiting periods for certain risks.

Confirmation must be conducted to every Policyholder, Insured, or Participant via telephone or video call, preceded by the implementation of identity verification of the Policyholder, Insured, or Participant.
The implementation of confirmation must be documented in the form of recordings and maintained by the Company for a period in accordance with the Company's policies so that the documentation can be used as evidence if a dispute occurs.
In the event that the Policyholder, Insured, or Participant does not provide validation or does not state understanding of the information confirmed by the Company, the Company assigns the marketer to explain again the matters that have not yet been validated or understood by the Policyholder, Insured, or Participant.
The Company conducts re-confirmation to Policyholders, Insured, or Participants who have received explanations as referred to in item 5 by meeting the requirements as referred to in items 1 through 4.

E. PAYDI Marketing Channels

Companies marketing PAYDI must meet marketing channel regulations as regulated in the Financial Services Authority Regulation regarding insurance products and marketing of insurance products, the Financial Services Authority Circular regarding insurance product marketing channels, and this Financial Services Authority Circular.
In the marketing of PAYDI, the Company must ensure that PAYDI marketers understand the PAYDI being marketed through:

a. the establishment of training standards for PAYDI marketers; and b. the implementation of training regarding the PAYDI being marketed and any changes thereto organized by internal Company personnel or external parties.

PAYDI marketers must hold special agency certification for PAYDI from a professional certification body in Indonesia in accordance with their line of business.
In the event that the professional certification body as referred to in item 3 is not yet operational, special agency certification for PAYDI can be conducted by the Company association.

F. PAYDI Marketing Advertising

Companies marketing PAYDI must meet marketing advertising regulations as regulated in the Financial Services Authority Regulation regarding insurance products and marketing of insurance products, the Financial Services Authority Circular regarding insurance product marketing channels, the Financial Services Authority Circular regarding the submission of information for the purpose of marketing financial products and/or services, and this Financial Services Authority Circular.
PAYDI marketing advertising is a form of communication through media for the purpose of marketing PAYDI to the public.
The Company is responsible for the truthfulness and accuracy of information conveyed in PAYDI marketing advertising.
Statements, data, and information conveyed in PAYDI marketing advertising must be accurate, honest, clear, and not misleading.
In the event that PAYDI marketing advertising contains Sub-fund performance information, the PAYDI marketing advertising must contain a comparison:

a. Sub-fund performance in the period:

at least the last 5 (five) years; or
the actual period since the Sub-fund was marketed, in the event the Sub-fund is less than 5 (five) years; and

b. benchmark performance, which is an investment instrument or index that has investment characteristics similar to the Sub-fund.

In the event that the period as referred to in item 5 letter a item 2) is less than 12 (twelve) months, the performance used is the asset performance in accordance with the composition of underlying investments of the Sub-fund during 12 (twelve) months.
In PAYDI marketing advertising, a warning statement must be conveyed to prospective Policyholders, Insured, or Participants as follows:

"PAYDI (product name) is an insurance product. The investment component in PAYDI contains risks. Prospective Policyholders, Insured, or Participants must read and understand the product information summary before deciding to purchase PAYDI. Past investment performance of PAYDI does not reflect future investment performance of PAYDI."

The warning statement as referred to in item 7 must be included in:

a. PAYDI marketing advertising delivered in written form, with the warning statement readable, clear, and attention-grabbing, for example printed in a different color or larger font size; and/or b. PAYDI marketing advertising delivered using long-distance communication media and/or audio and/or video channels, with a warning statement display duration of at least 5 (five) seconds and using clear and easily understandable voice.

The warning statement in PAYDI marketing advertising delivered in the form or method as referred to in item 8 letter b must be included in full during the warning display duration.
In the event that the Company's PAYDI marketing advertising uses media in the form of marketing brochures, both electronic and non-electronic, the use of such marketing brochures refers to the regulations regarding PAYDI marketing advertising.

G. Product and Service Information Summary (RIPLAY)

In marketing PAYDI, the Company must:

a. provide the general version of RIPLAY on the company website; and b. deliver the personal version of RIPLAY to prospective Policyholders, Insured, or Participants.

RIPLAY as referred to in item 1 contains information at least regarding the following matters:

a. name and logo of the Company; b. a statement that the Company has a business license and is supervised by the Financial Services Authority;
c. name of the PAYDI being marketed;
d. a statement that the PAYDI being marketed is an insurance product; e. duration of coverage or participation; f. PAYDI benefits including:

value and basis for setting protection benefits against risks;
method of calculating benefits linked to investment; and
requirements or conditions for benefits to be provided by the Company, including the scope of guaranteed risks, excluded risks, and risks not covered during the waiting period; and

g. risks borne by the Policyholder, Insured, or Participant:

type of risks and definitions for each risk; and
a statement printed in easy-to-understand and clear language that is attention-grabbing, that:

a) benefit values can increase or decrease; b) Sub-fund investment performance is not guaranteed; and c) benefit values related to investment can be smaller than the total invested funds.

h. procedures or methods:

application to become a Policyholder, Insured, or Participant, including age requirements and health conditions of the Policyholder, Insured, or Participant;
payment of Premiums or Contributions including the amount, frequency, and payment period;
formation and calculation of Cash Value,
including the amount of Premium or Contribution allocated for the formation of Cash Value;
submission, settlement, and payment of claims;
transfer, partial withdrawal, and full withdrawal
of Sub-fund Cash Value; and
resolution of complaints and disputes.
i. type, amount, and timing of cost charges during the
coverage or membership period with reference to the type of costs as referred to in Roman numeral IV letter G number 2, including costs charged to the Policyholder, Insured, or Member in the event of policy cancellation and costs charged during the Premium or Contribution holiday period; j. explanation that the Cash Value belonging to the Policyholder, Insured, or Member can be used for:
payment of insurance costs for basic products and
costs of additional insurance products based on the Insurance Policy and other costs to the Company in order to maintain coverage for risks in basic and additional insurance, especially in the event the Policyholder cannot make regular Premium or Contribution payments as agreed in the Insurance Policy; and
payment of investment-linked benefits to the
Policyholder, Insured, or Member, either through Cash Value withdrawal during the insurance period or payment of Cash Value at the end of the insurance period after considering payments as referred to in number 1), in the event there are payments as referred to in number 1); k. explanation regarding Sub-funds, at least including:
name, type of investment strategy, composition of
portfolio for each investment, category/risk level for each Sub-fund, and industry sector of the Sub-fund investment portfolio; and
frequency and method of calculating NAV and NAV
per unit.
l. type of contract used, specifically for PAYDI
based on Sharia principles; m. additional features on marketed PAYDI and requirements or criteria to obtain such additional features; n. description of Sub-fund investment performance in the period:
a) at least during the last 5 (five) years; or b) actual period since the Sub-fund was formed for Sub-funds formed less than 5 (five) years; compared to benchmark performance, i.e., investment instruments or indices that have similar investment characteristics to the Sub-fund. In the event the period as referred to in letter b) is less than 12 (twelve) months, the performance used is asset performance according to the underlying investment composition of the Sub-fund during 12 (twelve) months. o. provisions regarding the grace period for Premium or Contribution payment and the right of the Policyholder, Insured, or Member to cancel the Insurance Policy during the free look period; p. telephone number and email address of the customer care center (call center) owned by the Company; q. illustration of coverage or membership containing at least:
details of Premium or Contribution;
costs charged to the Policyholder,
Insured, or Member;
investment results;
death risk coverage benefits;
coverage benefits for other risks, if any; and
Cash Value balance;
which are presented annually, during the coverage or membership period; r. illustration of fund value received by the Policyholder, Insured, or Member if they:
cancel the Insurance Policy during the free look
period or terminate the Insurance Policy in the first 5 (five) years of the coverage period; and
make partial or full Cash Value withdrawals;
after considering all costs charged in connection with cancellation/termination of the Insurance Policy or Cash Value withdrawal; s. statement confirming that the growth of benefits as referred to in letter q is only an illustration; t. information on additional insurance products (riders) that can be selected by the Policyholder, Insured, or Member; and u. additional information other than the above information that is relevant to the purpose of the product information summary.

The illustration as referred to in number 2 letter q must
be created using:
a. assumptions in accordance with the specifications of the marketed PAYDI; and b. negative, zero, and positive investment result scenarios, with the assumption of post-tax investment return used in creating the scenario being a maximum of:

Sub-fund Type
Assumption of Maximum Investment Return (in %) Negative Zero Positive Money Market -1 0 5 Fixed Income -1 0 7 Equity -1 0 10 Mixed -1 0 8
4. The positive return assumption as referred to in number 3
is a moderate return assumption that is updated (di-update) at least once every year based on:
a. past performance of the Sub-fund since the Sub-fund was formed, or performance of investment instruments or indices that have similar investment characteristics to the Sub-fund in the event the Sub-fund is newly marketed by the Company; and b. potential deterioration of investment performance, in the event there are indications of deteriorating investment results.
5. In the event RIPLAY is a personal version, the product
information summary must contain:
a. illustrations as referred to in number 2 letter q and letter r using assumptions adjusted to the results of needs assessment and risk profile of the prospective Policyholder, Insured, or Member, including insurance benefit needs, ability to pay Premium or Contribution, choice of Sub-fund type, age, and coverage or membership term selected; and b. a statement that the prospective Policyholder, Insured, or Member has understood the information contained in the product information summary including costs and risks, which is signed or approved by the prospective Policyholder, Insured, or Member.
6. RIPLAY must not include investment return targets and/or
Cash Value targets that can be interpreted as the Company providing guarantees/warranties on investment returns or Cash Value. H. Sub-fund Performance Report (Fund Fact Sheet)

The Sub-fund performance report (fund fact sheet) as
referred to in letter A number 9 must be created for each Sub-fund:
a. for the first time, the Sub-fund performance report (fund fact sheet) must be created no later than 3 (three) months since the Sub-fund was marketed; and b. periodically, it must be updated (di-update) at least every 3 (three) months; in hardcopy and/or softcopy form.
The Sub-fund performance report (fund fact sheet) must
contain at least the following:
a. information regarding the Company; b. Sub-fund name;
c. reporting period;
d. information regarding Sub-fund profile:

type of investment strategy;
explanation of investment objectives/strategy,
including asset allocation percentage of the Sub-fund;
industry sector of the Sub-fund investment portfolio;
risk category of the Sub-fund;
name of the investment manager;
name of the Custodian Bank;
date of Sub-fund formation;
NAV per unit of the Sub-fund at the time of formation,
for Sub-funds stated in units;
currency; and
frequency of NAV valuation.
e. Sub-fund performance information:
total NAV, number of units, and NAV per unit at the end
of the reporting period;
composition of each type of investment at the end
of the reporting period;
list of detailed investments, stating which are the
largest among the top 10 (ten) investments or those representing 80% (eighty percent) of total investment for each Sub-fund at the end of the reporting period, with details of investment name, name of issuer/investee party, and information regarding the existence or non-existence of Related Parties;
development of investment performance for each Sub-fund,
at least:
a) annual development at the end of each year within the shorter period between the period since the Sub-fund was issued or within the last 5 (five) years; and b) monthly development during the last 12 (twelve) months. f. in the event a Sub-fund is formed less than 12 (twelve) months ago, the performance information as referred to in letter e number 4) is the investment performance of assets according to the underlying investment composition of the Sub-fund. The Company must provide information that such performance is not the performance of the Sub-fund but is the performance of assets that match the Sub-fund composition with the aim of providing an overview of Sub-fund performance; g. benchmark performance information in the form of development of investment instruments or indices that have similar investment characteristics to the Sub-fund for the same period as the development of Sub-fund performance as referred to in letter e number 4); h. disclaimer or warning statement that past performance does not reflect the future performance of the PAYDI in question, in easy-to-understand language and clear writing that attracts attention, such as printed in a different color, capital letters, or larger font size.

The Company must submit the Sub-fund performance report
(fund fact sheet) to the Policyholder, Insured, or Member at the time of:
a. submitting RIPLAY; and b. submitting Cash Value development reports.
I. Publication of NAV Information
Publication of NAV for each Sub-fund as referred to in letter A number 9 must be provided every Business Day at least on the Company's website, including:
a. NAV of each Sub-fund; b. NAV per unit and number of units for each Sub-fund stated in unit form; and
c. percentage of investment return for each Sub-fund
stated in non-unit form.
J. Reporting of Cash Value Development
The Cash Value development report as referred to
in letter A number 9 must be submitted to the Policyholder, Insured, or Member of PAYDI:
a. periodically at least:

every period of periodic Premium or Contribution
payment in the event the payment period is less than 3 (three) months; or
every 3 (three) months in the event periodic
Premium or Contribution is paid every 3 (three) months or more, or lump-sum Premium or Contribution payment. b. every single top-up Premium or Contribution payment; and
c. at any time upon request by the Policyholder,
Insured, or Member.

The Cash Value development report as referred to
in number 1 is submitted via email (e-mail), website, and/or online application, with the approval of the prospective Policyholder, Insured, or Member.
In the event the Company submits the Cash Value development
report via website or online application, the Company submits notification to the Policyholder, Insured, or Member via electronic mail and/or other communication media according to the period as referred to in number 1, that Cash Value information can be obtained from the website or online application.
In the event there are obstacles to submitting the Cash Value
development report using electronic mail and/or electronic systems, the Company submits the report in printed form using mail.
Cash Value development reporting as referred to
in number 1 contains at least the following information:
a. name of Policyholder, Insured, or Member; b. reporting period;
c. product name;
d. sum insured; e. opening Cash Value balance, including details of each Sub-fund; f. Premium or Contribution payments; g. details of Cash Value additions from each Sub-fund during the current period; h. details of Cash Value deductions from each Sub-fund during the current period;
i. details of costs charged to the Policyholder,
Insured, or Member with reference to provisions as referred to in Roman numeral IV letter G number 2; j. closing Cash Value balance, including details of each Sub-fund; k. value that can be obtained by the Policyholder, Insured, or Member if partial or full Cash Value withdrawal is made on the date of the Cash Value development report, after considering costs;
l. information regarding consequences if Premium or
Contribution is not paid during the grace period for Premium or Contribution payment;

m. information regarding the right of the Policyholder, Insured, or Member to submit an application for Premium or Contribution holiday (premium or contribution holiday) along with the consequences of the Premium or Contribution holiday right; n. information regarding changes in costs charged to the Policyholder, Insured, or Member in the upcoming period, if any; and o. provision of additional benefits to the Policyholder, Insured, or Member concerned since the submission of the Cash Value development report for the previous period.
6. In the event a Sub-fund is stated in unit form, information
regarding Cash Value as referred to in number 5 letters e, g, h, j, and k is added with information regarding NAV per unit and number of units of the Policyholder, Insured, or Member concerned.
VI. PAYDI REPORTING TO THE FINANCIAL SERVICES AUTHORITY

The reporting procedure for PAYDI follows provisions in
Financial Services Authority Circular Letter regarding insurance product reporting for insurance companies.
The reporting procedure for PAYDI based on Sharia principles
follows provisions in Financial Services Authority Circular Letter regarding insurance product reporting for Sharia insurance companies and insurance companies conducting
part of their business based on Sharia principles.
In addition to meeting provisions as referred to in number 1
and 2, PAYDI reports must contain the following information:
a. explanation of Sub-fund name and investment strategy; b. nominal and/or percentage amount of Premium or Contribution allocated to form the Sub-fund;
c. details of all costs charged to the Policyholder,
Insured, or Member including amount, method, and timing of charges; d. description of the method and frequency of NAV and NAV per unit valuation of the Sub-fund;

e. information regarding the Custodian Bank at least containing the name and address of the Custodian Bank; f. comparison between the sum insured or death risk insurance benefit amount in PAYDI and total periodic or lump-sum; g. description of investment performance

Sub-fund in the period of at least 5 (five) years
last or in the actual period since the Sub-fund was formed in the event the Sub-fund was formed less than 5 (five) years; and
investment instruments or indices that have
similar investment characteristics to the Sub-fund (benchmark). h. projection of investment returns for each Sub-fund for at least 5 (five) years ahead, using investment performance assumptions of assets that match the underlying investment composition of the Sub-fund, and considering deterioration risk;
i. information regarding PAYDI features; and
j. profit testing prepared using 2 (two) types of assumptions, namely best estimate assumption and best estimate assumption plus deterioration risk margin.

Information in the PAYDI report as referred to in number
3:
a. letters a to i are presented in the form of a product description document; and b. letter j is presented in the form of a profit testing document or asset share document.
New PAYDI reporting as referred to in number 1 is accompanied
by a form prepared using the shape and format as referred to in the Appendix, namely:
a. for PAYDI following the format as stated in
Appendix III; or
b. for PAYDI with Sharia principles following the format as stated in Appendix IV; which is an inseparable part of this Financial Services Authority Circular Letter.
VII. OTHER PROVISIONS
In marketing PAYDI, the Company must meet provisions
as referred to in Financial Services Authority Circular Letter regarding insurance product marketing channels and Financial Services Authority Circular Letter regarding insurance product marketing channels through cooperation with banks (bancassurance), as long as they do not conflict with this Financial Services Authority Circular Letter.
In providing information to prospective Policyholders,
Insured, or Members of PAYDI, the Company must meet provisions as regulated in legislation regarding information provision to consumers in the financial services sector and provisions in this Financial Services Authority Circular Letter.
Provisions as regulated in this Financial Services Authority
Circular Letter apply to PAYDI having Sub-funds stated in unit form and PAYDI having Sub-funds stated in non-unit form as long as it is not stated to apply specifically to one type of PAYDI.
VIII. TRANSITIONAL PROVISIONS
Insurance Policies for PAYDI issued by the Company before
this Financial Services Authority Circular Letter takes effect may continue to use the terms and conditions of such Insurance Policy.
Approval letters for PAYDI issued by the Financial Services
Authority before this Financial Services Authority Circular Letter takes effect remain valid, subsequently the Company must adjust such PAYDI to the provisions in this Financial Services Authority Circular Letter as follows:
a. provisions as referred to in Roman numeral III letter D number 3 and number 4, Roman numeral IV letter A, Roman numeral IV letter C,

Roman numeral IV letter D number 6, Roman numeral V letter I, and Roman numeral V letter J since this Financial Services Authority Circular Letter takes effect; b. reports as referred to in Roman numeral IV letter D number 23 are submitted to the Financial Services Authority for the first time in the March 2022 monthly report; and
c. provisions other than those mentioned in letters a and b
no later than 12 (twelve) months since this Financial Services Authority Circular Letter takes effect.
3. PAYDI reporting that has been submitted to the Financial
Services Authority before this Financial Services Authority Circular Letter takes effect but has not yet obtained approval letters or registration from the Financial Services Authority must meet the provisions regulated in this Financial Services Authority Circular Letter.
4. Insurance agents who have obtained special agency certification
for PAYDI stated in unit form (unit link) from the insurance business association may market PAYDI.
5. Companies that have placed investments on Sub-fund assets
exceeding placement limits on Related Parties, one party, and/or one Investment Recipient Group at the time this Financial Services Authority Circular Letter takes effect do not have to adjust such investment placements, but the Company must not add investment placements that increase the exceedance of such limits.
6. In the event Sub-fund assets formed before this Financial
Services Authority Circular Letter takes effect are placed in mutual funds having underlying assets other than securities issued by the Republic of Indonesia State or securities issued by Bank Indonesia, the Company does not have to adjust investment placements in mutual funds. However, such Sub-funds may only be owned by Policyholders, Insured, or Members who have owned such Sub-funds before this Financial Services Authority Circular Letter takes effect.
7. In the event PAYDI Insurance Policies are issued before this
Financial Services Authority Circular Letter takes effect with Rupiah currency having Sub-funds placed in foreign investments,

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
The Company does not have to adjust foreign investments of such Sub-funds.
IX. CLOSING

Provisions in this Financial Services Authority Circular Letter
take effect on the date of determination.
Upon the taking effect of this Financial Services Authority
Circular Letter, Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board number KEP-104/BL/2006 concerning Unit Link Products is revoked and declared invalid. Determined in Jakarta on 14 March 2022 EXECUTIVE HEAD OF SUPERVISOR OF INSURANCE, PENSION FUNDS, LENDING INSTITUTIONS, AND OTHER FINANCIAL SERVICES INSTITUTIONS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed RISWINANDI

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR LETTER
REPUBLIC OF INDONESIA
NUMBER 5 /SEOJK.05/2022
CONCERNING
INVESTMENT-LINKED INSURANCE PRODUCTS

LIST OF RELATED PARTIES AND INVESTMENT RECIPIENT GROUPS Name of Party Code Name Related Party (Yes/No) Investment Recipient Group (Yes/No) Name of Investment Recipient Group (Conglomerate) Form of Control Relationship Ownership Percentage Remarks 1 2 3 4 5 6 7 8 1 Filled with the name of the party having Sub-fund investment placement of PAYDI. 2 Filled with the code name of the party, in accordance with applicable naming regulations in the capital market or banking. 3 Filled with whether the party in number 1 is a Related Party. 4 Filled with whether the party in number 1 is part of the Investment Recipient Group. 5 Filled with the name of the Investment Recipient Group (Business Conglomerate) in the event the party in number 1 is part of the Investment Recipient Group. Naming of the group is in accordance with the naming used by the Company in identifying the group. 6 Filled with the form of control relationship, whether due to ownership, management, or financial relationship. 7 Filled with ownership percentage, in the event the control form is caused by ownership. DETAILS OF PAYDI SUB-FUND ASSETS Description Account Name Sub-fund Asset Status Type of Investment Country Name Currency Exchange Rate Code Counterparty Name of Counterparty Is Counterparty a Related Party? (Yes/No) Name of Investment Recipient Group Serial Number Category Economic Sector 1 2 3 4 5 6 7 8 9 10 11 12 13 14 detail row-1 detail row-2 detail row-3 and so on Total

Description Account
Name of
Mutual
Fund
Name of
Investment
Manager
(MI)
Cluster
Device
Type of
Collateral
Term
(Days)
Market
Value
Collateral
Balance
At
Placement
Quantity
(grams) Balance
% of
NAV
Sub-fund
Liquid
Balance
(Less
Than
One
Year)
Target
Investment
Return Rate
Investment
Return Rate
Remarks
1 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 detail row-1 detail row-2 detail row-3 and so on Total

1 Filled with the name of the investment portfolio in the Sub-fund PAYDI 2 Filled with the name of the Sub-fund PAYDI 3 Filled with the asset status based on its allocation, namely "Non-Guaranteed Sub-fund PAYDI Assets", "Guaranteed Sub-fund PAYDI Assets", "Back Up Assets of Guaranteed Sub-fund PAYDI". The term back-up assets refers to the Company's assets provided in anticipation of adding guaranteed Sub-fund PAYDI. 4 Filled with the investment type code. 5 Filled with the name of the country of residence of the recipient or issuer of the Sub-fund investment. 6 Filled with the investment asset currency. 7 Filled with the Bank Indonesia middle exchange rate of the investment asset currency on the reporting date. 8 Filled with the code of the recipient or issuer of the investment that is the underlying Sub-fund. 9 Filled with the name of the recipient or issuer of the investment that is the underlying Sub-fund. 10 Filled with whether the recipient or issuer of the investment is a "Related Party". 11 Filled with the name of the investment recipient group, in case the recipient or issuer of the investment is part of the Investment Recipient Group. 12 Filled with the series number of the investment instrument that is the Sub-fund portfolio, for example, bond series number. 13 Filled with whether "LPS guaranteed" or "Government guaranteed", or "Others". 14 Filled with the economic sector of the recipient or issuer of the investment. 15 Filled with the name of the mutual fund, in case the investment is a mutual fund. 16 Filled with the name of the investment manager, in case the investment is managed by an investment manager. 17 Filled with the investment rating, in case the investment is rated by a securities rating agency.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
18 Filled with the investment rating cluster.
19 Filled with the type of asset that serves as the investment guarantee.
20 Filled with the investment maturity period.
21 Filled with the market value of the guarantee from the asset serving as the investment guarantee. 22 Filled with the investment balance at the time of placement. 23 Filled with the weight, in case the investment is in the form of gold. 24 Filled with the investment balance as of the reporting date. 25 Filled with the investment percentage compared to the total Net Asset Value (NAB) of the Sub-fund.

Established in Jakarta on 14 March 2022
EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
LENDING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS SUPERVISOR FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed RISWINANDI

APPENDIX II
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 5 /SEOJK.05/2022 CONCERNING PRODUCT INSURANCE LINKED TO INVESTMENT

FORMAT OF PRODUCT UNDERSTANDING STATEMENT FROM LIFE INSURANCE COMPANY OR SHARIA LIFE INSURANCE COMPANY PRODUCT UNDERSTANDING STATEMENT INVESTMENT-LINKED INSURANCE PRODUCT (PAYDI) [INSURANCE COMPANY NAME] ATTENTION:

Prospective Policyholders, Insured, or Participants MUST read and understand all information related to the PAYDI Product to be purchased, including but not limited to the General Product and Service Information Summary (RIPLAY), Personal RIPLAY (including Illustration), and Sub-fund PAYDI fund fact sheet, as well as the contents of this Product Understanding Statement.
If the prospective Policyholder, Insured, or Participant does not understand/disagrees with the contents of this Product Understanding Statement or if what is explained by the Marketer differs from what is stated in this Product Understanding Statement, then the prospective Policyholder, Insured, or Participant MUST NOT sign and MUST NOT proceed with the purchase of the PAYDI Product.
This Product Understanding Statement MUST be filled out by the prospective Policyholder, Insured, or Participant themselves.
The undersigned below:
Name :
NIK :
decides to purchase the PAYDI Product from [Company Name] Insurance Company with Product Name :
Currency :
Furthermore, I hereby state that I have:
a. received the general version of the product and service information summary (RIPLAY) and personal version RIPLAY (including illustration), as well as the Sub-fund report (fund fact sheet) PAYDI; and b. received explanations, read, and understood important information contained in the documents in letter a, including PAYDI features, costs to be charged, and potential investment risks that may occur in the capital market and/or money market related to the PAYDI Product as stated in the General RIPLAY, Personal RIPLAY (including illustration), and Sub-fund PAYDI fund fact sheet that I will purchase. Furthermore, I state that the PAYDI Product I purchased has met my financial needs and capabilities and my risk profile based on the Financial Need Analysis (FNA) and Risk Profile Questionnaire (RPQ) that I have filled out. Regarding the understanding of the PAYDI Product, the following are the levels of my understanding statements regarding PAYDI, including but not limited to:
STATEMENT
Initial
Yes No
A. PAYDI Features

I understand that PAYDI is an INSURANCE PRODUCT that provides protection benefits against risks and investment accumulation benefits that depend on the performance of the investment I choose.
INSURANCE COMPANY NAME AND LOGO
STATEMENT
Initial
Yes No
I understand that PAYDI is not a savings or deposit product from a bank.
I understand that PAYDI is a long-term insurance product and is not suitable for Policyholders, Insured, or Participants who have fund usage needs sourced from PAYDI in the short term.
I understand that insurance benefits in the form of risk protection benefits (for example, death or illness benefits) will only be provided if a risk occurs as stated in the Insurance Policy.
I understand that the INVESTMENT ILLUSTRATION IS ONLY A DESCRIPTION regarding the investment value results of the PAYDI Product and scenarios that MAY occur in the future and IS NOT A GUARANTEE OF THE INVESTMENT VALUE THAT I WILL RECEIVE in the future. I understand that actual investment results in the future may be lower than the information stated in the provided illustration.
I understand that I CAN cancel the PAYDI policy during the policy study period (freelook period) and will receive a refund of Premium or Contribution after being deducted by costs according to the Insurance Policy provisions.
I understand that if I choose not to undergo a health check first, then during the waiting period (waiting period), if a covered risk occurs as stated in the Insurance Policy provisions, I am not entitled to receive risk protection benefits based on the PAYDI policy. Risks not covered during the waiting period (waiting period) as stated in the Insurance Policy, including but not limited to death other than due to accidents and inpatient or outpatient treatment for certain diseases such as heart disease and cancer.
I understand that PAYDI contains an exclusion clause so that risk protection benefits cannot be paid if the excluded condition occurs.
I understand that additional feature benefits (if any) will only be provided if the criteria stated in the Insurance Policy are met.
B. Costs
I understand the type, amount, and timing of cost charges related to PAYDI during the insurance period as stated in the Insurance Policy, including:
a. acquisition costs (used for agent commissions, bancassurance commissions, or other intermediary commissions); b. redemption/termination costs (surrender charge);
c. basic insurance costs and additional insurance costs (rider);
d. partial withdrawal costs; e. fund transfer costs; f. custody costs; g. management costs; and h. administration and policy maintenance costs.
I understand that if I take a Premium or Contribution holiday, the costs arising as stated in the Insurance Policy will still be charged and will reduce the principal value (accumulated Premium or Contribution paid) and investment results according to the Insurance Policy provisions.
STATEMENT
Initial
Yes No
I understand that after the Premium or Contribution payment period ends, the company will charge costs levied on the Cash Value according to the provisions in the Insurance Policy.
I understand that if I cancel the Insurance Policy after the policy study period (free look period) but before the insurance period ends, my investment value will be subject to policy redemption costs (surrender charge). In addition to policy redemption costs (surrender charge), all Premiums or Contributions paid during the insurance period that has run have also been reduced by the costs mentioned in number 1. The consequence of this, I understand that under certain conditions (for example, when investment values are declining in the capital market) THERE MAY BE NO REMAINING INVESTMENT VALUE.
C. Investment Value and Risks
I understand that my investment value IS NOT GUARANTEED and will depend on the amount of Premium or Contribution, investment results on the type of investment I choose, and costs charged on the Insurance Policy.
I understand that the investment value reflected in the Cash Value balance can be used for:
a. payment of insurance costs for basic products and additional insurance product costs based on the Insurance Policy and other costs to the Company in order to maintain risk protection on basic and additional insurance, especially in the event that I as the Policyholder cannot make regular Premium or Contribution payments as agreed in the Insurance Policy; and b. payment of benefits linked to investment to the Policyholder, Insured, or Participant, either through Cash Value withdrawals during the insurance period or Cash Value payments at the end of the insurance period after considering payments as mentioned in letter a, in case there are payments as mentioned in letter a.
I understand that Premiums or Contributions that I have paid and after being deducted by arising costs will be placed in capital market and/or money market investment instruments according to the type of Sub-fund I choose which has different investment risks and have been explained by the agent/marketer to me.
I understand that the investment component in PAYDI contains risk losses including but not limited to market risk (fluctuation of investment instrument prices), exchange rate risk, liquidity risk, credit risk, tax regulation change risk, and other risks.
I understand that the costs as mentioned in letter B and risks as mentioned in letter C number 4, MAY CAUSE A REDUCTION OR LOSS OF MY INVESTMENT VALUE AND EVEN MAY
This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
STATEMENT
Initial
Yes No
LOSS OF PAID PREMIUM OR CONTRIBUTION AND TERMINATION OF INSURANCE.
Thus, the Product Understanding Statement as stated in letters A, B, and C in the table above, I make according to the actual conditions without any element of coercion or pressure from any party and so that it can be used as appropriate. [Signature of Prospective Policyholder, Insured, or Participant] ________________________ Name :
Date :
NOTE:
a. For each statement in the table above, the prospective Policyholder, Insured, or Participant must initial the "Yes" column if they have understood the statement or the "No" column if they have not understood the statement. b. The prospective Policyholder, Insured, or Participant can purchase PAYDI if they have stated understanding of all the statements above, by initialing the "Yes" column.
c. If there are statements initialled in the "No" column, the Company cannot sell PAYDI to the prospective Policyholder, Insured, or Participant. If the prospective Policyholder, Insured, or Participant still intends to purchase PAYDI, the Company must explain the terms and conditions of PAYDI to the prospective Policyholder, Insured, or Participant again and request the prospective Policyholder, Insured, or Participant to re-fill this Statement.
d. The Policyholder, Insured, or Participant who provides initials and signatures on this statement is:

Policyholder for individual policies, or
Policyholder and Insured, or Participant for group policies.

APPENDIX III
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 5 /SEOJK.05/2022 CONCERNING PRODUCT INSURANCE LINKED TO INVESTMENT

REPORTING FORM
NEW PAYDI APPROVAL REPORTING FOR INSURANCE COMPANIES
I. REPORTING FORM FOR NEW PAYDI APPROVAL ASSESSMENT
GENERAL INFORMATION
Insurance Company Name
Contact Person Name and Phone/email
Technical PIC:
Directorate in charge of Insurance Product Development:
Report Letter Number and Date
Insurance Product Name
Classification/Business Line
Marketing Target
Individual Insured
Non-Individual Insured (Companies, etc.)
Individual and Non-Individual Insured (Companies, etc.)
Brief Description of Insurance Product
NO. DESCRIPTION YES NO NOTES
I PRELIMINARY ANALYSIS

Insurance Product Status
(Article 28 POJK
No.23/POJK.05/2015) a. Never marketed; or b. Changes to a marketed Insurance Product where the changes include:

risks covered including exclusions or restrictions on the causes of risks covered;
Premium formulation;
risk category changes;
assumptions related to Premium formulation;
and/or
Cash Value calculation method.
Provide a brief explanation of the changes made by the Insurance Company

Insurance Product Name
(Article 10 POJK
No.23/POJK.05/2015) a. the name of the insurance product to be marketed meets the requirements:

using the word insurance or synonymous words; and
not causing interpretations that the product is not an insurance product.
State the name of the insurance product to be reported Insurance product name must be used consistently in all insurance product reporting documents b. Does not use the name of the PAYDI Sub-fund with a name that can cause interpretations different from its investment strategy.

New insurance products to be reported must be included in the Insurance Company's business plan
(Article 28 POJK
No.23/POJK.05/2015)
State the title and date of the Insurance Company's business plan
Fulfillment of Financial Health and Compliance Requirements
(Article 30 POJK
No.23/POJK.05/2015) a. The Insurance Company meets the financial health level requirements of the last quarter State the RBC achievement ratio b. The Insurance Company is not currently subject to administrative sanctions If the Insurance Company is subject to sanctions, state:

type of violation
sanction letter number
type of sanction

The Company has own capital of at least Rp250,000,000,000.00 (two hundred fifty billion rupiah) (for Companies that have never marketed PAYDI before this SEOJK PAYDI was implemented)
State the own capital based on the latest monthly report.
II DOCUMENT COMPLETENESS ANALYSIS
Cover letter signed by the Directorate or equivalent from the Insurance Company
(Article 29 POJK
No.23/POJK.05/2015)
Attach cover letter
Description of New Insurance Product
Attach description of new insurance product as referred to in Appendix VI SEOJK No.13/SEOJK.05/2016
Risk profile, interest rates, mortality or morbidity tables, estimated investment results from Premium, acquisition costs, administrative costs, and other general costs for calculating Premium determination
(Article 26 POJK
No.23/POJK.05/2015)
Attach the table used and data sources
Profit testing or asset share documents
(Romawi VI number 4 letter j)
Attach profit testing or asset share completed with qualitative explanations of the assumptions used, at least Premium growth, claim ratio, expense ratio, and profitability, as well as the relationship of these assumptions with company historical data.
Specimen Insurance Policy
Attach:

Policy Provisions
Insurance Policy Summary accompanied by dummy coverage data
Insurance Policy Certificate/membership proof accompanied by dummy coverage data (specifically for group insurance products)
Example participant list accompanied by dummy coverage data (specifically for group insurance products)

Actuarial Statement Letter from the Company
(Article 26 POJK Number
23/POJK.05/2015)
As per the Actuarial Statement Letter from the Company as referred to in Romawi II of this form
Directorate Statement Letter stating that:
a. The Insurance Company meets the financial health level requirements; b. The Insurance Company is not currently subject to administrative sanctions;
c. the reported insurance product is included in the Insurance Company's business plan approved by shareholders; and
(Article 28 and Article 30 POJK
Number 23/POJK.05/2015) d. The Company has information systems and resources capable of supporting PAYDI management. (Romawi II number 1 letter c and letter d) Attach Directorate Statement Letter as referred to in Romawi III of this form
Proof of having experts with qualifications of Deputy Investment Manager with at least 3 (three) years of experience in their field at the managerial level
(Explanation Article 7 paragraph 1 letter d POJK 69/2016) (Romawi II number 1 letter b) Attach:

Deputy Investment Manager Certificate;
Deputy Investment Manager resume list; and
Deputy Investment Manager appointment SK
Statement that the person concerned does not hold concurrent positions in the Company and/or other financial service institutions, acts as a coordinator for the investment management function, is an official directly responsible to the Directorate, and has never been subject to the revocation of the Deputy Investment Manager license based on laws and regulations in the capital market field for the last 3 (three) years.

Proof of having information systems capable of supporting PAYDI management activities
(Romawi II number 1 letter c)
Attach proof of having information systems capable of supporting PAYDI management activities (example: information system manuals related to PAYDI and copies of forms or information generated from the information system) for Insurance Companies marketing PAYDI for the first time)
Description of marketing methods and examples of marketing kits (brochures, etc.)
(Article 11 and Article 20 POJK
No.1/POJK.07/2013, Article 52
POJK No.23/POJK.05/2015)
Attach example marketing kit
Example Form for Analysis of Prospective Policyholder, Insured, or Participant's Needs and Capabilities
(Romawi V letter B)
Attach example form for analysis of prospective Policyholder, Insured, or Participant's needs and capabilities.
Example Form for Analysis of Prospective Policyholder, Insured, or Participant's Risk Profile
(Romawi V letter B)
Attach example form for analysis of risk profile.
Example Form for Product Understanding Statement
(Romawi V letter C number 1 letter c)
Attach example form for prospective Policyholder, Insured, or Participant's understanding statement.
General Version Product and Service Information Summary (RIPLAY)
(Part VI SEOJK
No.12/SEOJK.07/2014) (Romawi V letter G)
Attach example of general version RIPLAY.
(RIPLAY is not an agreement document and is different from offer documents such as brochures and leaflets and different from insurance product descriptions)
Personal Version RIPLAY, containing coverage illustrations and investment balance projections
Attach example of personal version RIPLAY.
Example insurance application letter
(Article 16 POJK
No.1/POJK.07/2013)
Attach example insurance application letter.
Sub-fund performance report (fund fact sheet)
Attach example performance report
Confirmation documentation (welcoming call)
Attach confirmation documentation.
Cash Value development report (Romawi V letter J)
Attach example Cash Value development report
Proof that agents or marketers marketing PAYDI have:
a. obtained special agency certification for PAYDI from a professional certification body in Indonesia according to their business field or from the Company Association Attach photocopy of special agency certification for PAYDI b. registered with OJK and/or the insurance company association according to their business field Attach photocopy of registration mark from the relevant association
c. attended training regarding PAYDI
Attach photocopy of training materials and attendance list
Reporting Form for Joint Insurance Product Approval in the event that PAYDI is marketed together with other Insurance Companies
Attach form as referred to in Appendix IV
SEOJK number
13/SEOJK.05/2016
Product comparison matrix before and after changes (specifically for insurance products previously marketed)
(Article 28 POJK
No.23/POJK.05/2015)
Attach comparison matrix
III COMPLIANCE AND SUBSTANTIVE ANALYSIS
Coverage Object
a. provides protection from at least 1 (one) type of insurable risk (Article 2 POJK No.23/POJK.05/2015) State the type of risk covered b. in accordance with the scope of the Insurance Company's business and in accordance with general insurance principles (Article 9 POJK No.23/POJK.05/2015) State the insurance business line according to the classification as referred to in Appendix VI SEOJK Number 13/SEOJK.05/2016
c. PAYDI coverage benefits must have at least a proportion of protection against death risk
(Article 4 POJK
No.23/POJK.05/2015) d. the amount of coverage for death risk protection benefits as mentioned above, must be at least equal to the applicable provisions (Romawi III letter B) State the amount of coverage. e. insurance coverage period must be at least equal to the applicable provisions (Romawi III letter A number 1) State the insurance coverage period. f. has a specific investment strategy State the investment strategy for each Sub-fund offered in the reported PAYDI. g. provides options for prospective policyholders to choose whether to undergo a health check or be subject to a waiting period. (Romawi III letter A number 6) Explain underwriting procedures and forms of prospective Policyholder approval.
Insurance Policy
a. benefits agreed in the Insurance Policy are consistent with the insurance product description.
State the article in the Insurance Policy governing it. b. provisions within the Insurance Policy must at least contain the following:

General Provisions (Article 11 of POJK No. 23/POJK.05/2015)
a) Effective date of coverage
State the article in the Insurance Policy that regulates it. b) Description of agreed benefits State the article in the Insurance Policy that regulates it. c) Premium payment method State the article in the Insurance Policy that regulates it. d) Premium payment grace period State the article in the Insurance Policy that regulates it. e) Exchange rate used for Insurance Policies with foreign currency if premium payments and benefits are linked to the Rupiah currency State the article in the Insurance Policy that regulates it. The exchange rate used for Insurance Policies with foreign currency must be an equivalent rate issued by Bank Indonesia at the time of payment (Article 16 of POJK No. 23/POJK.05/2015). f) Time recognized as the date of premium payment receipt State the article in the Insurance Policy that regulates it. g) Insurance Company policy established if premium payment exceeds the agreed grace period State the article in the Insurance Policy that regulates it. h) Period during which the Insurance Company cannot review the validity of the insurance contract (incontestable period) for long-term insurance products State the article in the Insurance Policy that regulates it. i) Cooling off / free-look period State the article in the Insurance Policy that regulates the free-look period provisions and costs charged if the Policyholder cancels the Insurance Policy during that period. j) Investment strategy State the article in the Insurance Policy that regulates it. If the company establishes more than one investment sub-fund, this clause must include the name of the sub-fund and the investment strategy of each established investment sub-fund. k) Policyholder's right to choose one or more investment sub-funds State the article in the Insurance Policy that regulates it. l) Fund switching (fund transfer) State the article in the Insurance Policy that regulates it. m) Policyholder's right not to pay premiums for a certain period (Premium holiday). Premium holiday is only permitted if there is a request or approval from the Policyholder at least 30 days before it takes effect. State the article in the Insurance Policy that regulates it. n) Details of all costs charged to the Policyholder State the article in the Insurance Policy that regulates it. The cost details include acquisition costs, management costs, and mortality costs. These costs must meet Roman IV letter G. o) Insurance Company's obligation to periodically submit reports on Cash Value development at least every premium payment period State the article in the Insurance Policy that regulates it. The reporting period is every premium payment period if less than 3 (three) months, or every 3 (three) months if premiums are paid every 3 (three) months or more. p) Coverage termination clauses, from the Insurance Company, Policyholder, or Insured, including conditions and causes State the article in the Insurance Policy that regulates it. q) Claim submission requirements and procedures,
including relevant supporting evidence required for claim submission State the article in the Insurance Policy that regulates it. r) Claim settlement and payment procedures State the article in the Insurance Policy that regulates it. s) Dispute resolution clauses, which include mechanisms for settlement within and outside of court, and the choice of dispute resolution venue State the article in the Insurance Policy that regulates it. Dispute resolution outside of court is conducted through an Alternative Dispute Resolution Institution (LAPS) included in the LAPS list established by OJK. t) Language used as reference in case of dispute or disagreement, for Insurance Policies printed in 2 (two) or more languages State the article in the Insurance Policy that regulates it. u) Information delivery mechanism in case of cost changes (Article 12 of POJK No. 1/POJK.07/2013) State the article in the Insurance Policy that regulates it. v) Establishment of Sub-funds State the article in the Insurance Policy that regulates it. This clause must include the method and timing of unit or participant investment establishment from premiums. w) Establishment of Cash Value State the article in the Insurance Policy that regulates it. x) Method and frequency of calculating NAB (Net Asset Value) or NAB per unit of each Sub-fund managed by the company in reported insurance products This clause must include the method and timing of unit or participant investment establishment from premiums. y) Additional features and requirements or criteria to obtain additional benefits State the article in the Insurance Policy that regulates it.
Dispute Resolution Provisions (Article 17 and Article 18 of POJK No. 23/POJK.05/2015)
a) There are no provisions in the Insurance Policy that can be interpreted as preventing the Policyholder or Insured from taking legal action, thereby forcing the Policyholder or Insured to accept claim payment rejection. b) There are no provisions in the Insurance Policy that can be interpreted as restricting legal actions by the parties in case of disputes regarding Insurance Policy provisions. c) Provisions in the Insurance Policy regarding dispute resolution for insurance agreements conducted outside of court provide alternative dispute resolution options through alternative dispute resolution institutions as regulated in laws and regulations regarding alternative dispute resolution institutions in the financial services sector. State the article in the Insurance Policy that regulates it. Dispute resolution outside of court is conducted through an Alternative Dispute Resolution Institution (LAPS) included in the LAPS list established by OJK. d) Provisions in the Insurance Policy regarding dispute resolution for insurance agreements conducted through courts do not restrict the choice of court only to the District Court where the Insurance Company is located.

c. Insurance Policies issued and marketed within the jurisdiction of Indonesia must be made in the Indonesian language.
If necessary, Insurance Policies may be issued in foreign languages or regional languages alongside the Indonesian language. (Article 20 of POJK No. 23/POJK.05/2015)

d. The specimen of the Insurance Policy must include the section of Premium received by the Insurance Company and the section of Premium transferred to the insurance brokerage company as remuneration for brokerage services (if using insurance brokerage services) (Explanation of Article 29 of Law No. 40 of 2014) State the section in the Insurance Policy that regulates it.

e. There is a statement that “This Agreement has been adjusted to the provisions of laws and regulations, including provisions of regulations by the Financial Services Authority” (Part III of SEOJK No. 13/SEOJK.07/2014)

Description of New Insurance Product
Attach the description of the new insurance product as referred to in Attachment VI of SEOJK No. 13/SEOJK.05/2016. The description of the new insurance product must also include the following information: (Roman VI number 4) a. explanation regarding the choice of Sub-funds and Sub-fund investment strategies; b. nominal and/or percentage amount of Premiums allocated to form Sub-funds;
c. details of all costs charged to the Policyholder, including the amount, method, and timing of charging;
d. description of the method and frequency of valuing NAB and NAB per unit of Sub-funds; e. information regarding the Custodian Bank, which must at least contain the name and address of the Custodian Bank; f. comparison between the amount of coverage or insurance benefits for death risk in PAYDI and total periodic or single premiums; g. description of investment performance:
- Sub-funds for a period of at least 5 (five) years;
- Sub-funds for the actual period since the Sub-fund was established if the Sub-fund was established less than 5 (five) years; or
- Investment instruments or indices that have investment characteristics similar to the Sub-fund, if the Sub-fund is being marketed for the first time by the Company;
  h. description of the basis for determining the assumed rate of return used in creating illustrations in RIPLAY.
Profit testing/asset share
a. Profit testing is prepared using 2 (two) types of assumptions, namely best estimate assumptions and best estimate assumptions plus deterioration risk margins. (Roman VI number 5) b. The assumptions used are fair.
c. Surplus from the reported insurance product is sufficiently adequate for the Insurance Company.
Marketing Media
Attach marketing brochures.
There must be a warning statement to prospective Policyholders, Insured, or Participants as follows: “PAYDI (product name) is an insurance product. The investment component in PAYDI contains risks. Prospective Policyholders, Insured, or Participants must read and understand the product information summary before deciding to purchase PAYDI. Past investment performance of PAYDI does not reflect future investment performance of PAYDI.”
Product and Insurance Service Information Summary
a. The product information summary consists of a product information summary intended for the general public and a product information summary created individually/personally. b. The insurance product information summary must at least contain: (Article 8 of POJK No. 1/POJK.07/2013 and Part VI of SEOJK No. 12/SEOJK.07/2014) (Roman V letter G number 2)

Company name and logo;
Statement that the Company has a business license and is supervised by the Financial Services Authority;
Name of the marketed PAYDI;
Statement that the marketed PAYDI is an insurance product;
Coverage or membership duration;
PAYDI benefits include:
a) value and basis for determining protection benefits against risks; b) method for calculating benefits linked to investments; and c) requirements or conditions for benefits to be provided by the Company, including the scope of guaranteed risks, excluded risks, and risks not covered during the waiting period;
Risks borne by the Policyholder, Insured, or Participant:
a) types of risks and definitions for each risk; b) statements printed in easy-to-understand, clear, and attention-grabbing language, stating:
i. benefit values may increase or decrease;
ii. Sub-fund investment performance is not guaranteed; and
iii. benefit values related to investments may be smaller than the total invested funds;
Procedures or methods:
a) application to become a Policyholder, including age requirements and health conditions of the Policyholder or Insured; b) premium payments, including amounts, frequency, and payment periods; c) establishment and calculation of Cash Value, including the amount of premiums allocated for establishing Cash Value; d) claim submission, settlement, and payment; e) complaint and dispute resolution;
Types, amounts, and timing of cost charges during the coverage or membership period, including costs charged to the Policyholder if the policy is cancelled and costs charged during the premium holiday period;
Description of Sub-funds, at least including:
a) name, investment strategy type, investment portfolio composition, and risk category/level for each Sub-fund and industry sector of the Sub-fund's investment portfolio; and b) frequency and method of calculating NAB and NAB per unit;
Description of additional features and requirements to obtain additional benefits;
Description of Sub-fund investment performance for a period of at least 5 (five) years, or for the actual period since the Sub-fund was established for Companies selling the product for less than 5 (five) years, compared to the performance of investment instruments or indices that have investment characteristics similar to the Sub-fund;
Provisions regarding the premium payment grace period and the Policyholder's or Insured's right to cancel the Insurance Policy during the policy study period (free look period);
Telephone number and email address of the Company's customer service center (call center);
Coverage or membership illustrations containing at least:
a) premium details; b) costs charged to the Policyholder or Insured; c) investment results; d) protection benefits for death risks; e) protection benefits for other risks, if any; f) Cash Value balances; presented annually, during the coverage or membership period;
Illustrations must be made based on low, medium, and high scenarios considering:
a) past performance of the Sub-fund; b) performance of investment instruments or indices that have investment characteristics similar to the Sub-fund, accompanied by an explanation of the name of the investment instrument or index used as a reference, if the Sub-fund is being marketed for the first time by the Company; and/or c) potential deterioration of investment performance, if there are indications of deterioration in investment results with the assumption of post-tax investment returns as regulated in Roman V letter G number 3;
Illustration of fund values received by the Policyholder if they:
a) cancel the policy during the policy study period (free look period) or the first 5 (five) years of the coverage period; b) withdraw part or all of the Cash Value; after considering all costs charged in connection with the cancellation/termination of the Insurance Policy or withdrawal of Cash Value;
Statement affirming that the growth of benefit values as referred to in number 15 is only an illustration;
Information regarding additional insurance products (riders) that can be chosen by the Policyholder;
Other additional information;
In the product information summary created personally, illustrations as referred to in numbers 15) and 17) are adjusted to the profile of the prospective Policyholder.

Example of Insurance Application Form (SPA)
Attach an example SPA containing matters including information regarding the suitability between the customer's profile and the offered insurance product.
Premium Calculation
a. Premiums must correspond to the promised benefits, established at rates that are sufficient, not excessive, and not applied discriminately (Article 3 of POJK No. 23/POJK.05/2015) State the section in the insurance product description containing the premium calculation formula. b. Risk premium determination must have considered all coverage scopes as described in the insurance product description or Insurance Policy specimen. State the section in the insurance product description containing the premium calculation formula.
c. The premium calculation formula in the insurance product description must be consistent with the insurance benefits to be provided.
State the section in the insurance product description containing the premium calculation formula. d. Premium determination must consider at least: (Article 26 of POJK No. 23/POJK.05/2015)

Pure premiums calculated based on risk profiles, interest rates, mortality tables, or morbidity tables. Explain the consistency between pure premiums and risk profile data as referred to in Attachment VI of SEOJK No. 13/SEOJK.05/2016.
Interest rates. State the assumed interest rates used.
Acquisition costs. State the proportion of acquisition cost components in gross premiums.
Administrative costs. State the proportion of administrative cost components in gross premiums.
Other general costs. State the proportion of other general cost components in gross premiums.
Estimated investment results. Attach investment result data and investment strategies supporting the estimated investment results.
e. The premium calculation methodology for reported new insurance products must be consistent with generally accepted and commonly used insurance principles (best practice and common practice). f. Assumptions used in premium calculations must use fair and realistic figures.

Reporting Cash Value Development (Roman V letter J)
Cash Value development reporting must contain at least the following: (Roman V letter J number 5) a. Policyholder name; b. reporting period;
c. product name;
d. coverage amount; e. beginning Cash Value balance from the details of each Sub-fund; f. premium payments; g. details of Cash Value additions from each Sub-fund in the current period; h. details of Cash Value reductions from each Sub-fund in the current period;
i. details of all costs charged to the Policyholder or Insured, referring to the provisions as referred to in Roman IV letter G number 2;
j. ending Cash Value balance, including details of each Sub-fund; k. value obtainable by the Policyholder or Insured if part or all of the Cash Value is withdrawn on the date of the Cash Value development report, after considering costs;
l. information regarding consequences if premiums are not paid during the premium payment grace period;
m. information regarding the Policyholder's or Insured's right to request a premium holiday (premium holiday) and the consequences of the premium holiday right; n. value and unit price information regarding cost changes charged to the Policyholder or Insured in future periods, if any; and o. provision of additional benefits to the respective consumers since the submission of the previous period's Cash Value development report.
Cash Value
The amount of Cash Value must be at least equal to the accumulated funds to the policyholder and must meet the following provisions: (Roman III letter C) a. for PAYDI having Sub-funds expressed in unit form, determined based on the number of units and NAB per unit for the respective Sub-fund at a certain time. b. for PAYDI having Sub-funds expressed in non-unit form, determined based on the portion of premiums allocated for establishing Cash Value, fund development results, and costs charged according to Insurance Policy provisions.
Proof of having an information system capable of supporting PAYDI management activities, which must at least be able to provide: (Roman II number 1 letter c)
Attach proof of having an information system capable of supporting PAYDI management activities (example: manual of information systems related to PAYDI) for Insurance Companies marketing PAYDI for the first time.) a. coverage illustrations required for offering PAYDI to prospective Policyholders or Insured; b. daily NAB and NAB per unit information if Sub-funds are expressed in units, to be posted on the Company's website;
c. daily Cash Value information for each Policyholder or Insured;
d. Cash Value development reports; e. Sub-fund development reports; f. financial reports that must be prepared based on laws and regulations and generally accepted accounting standards; and g. information and reports for monitoring PAYDI performance as referred to in Financial Services Authority Regulations regarding insurance products and insurance product marketing.
Sub-fund Performance Report (fund fact sheet), must contain at least: (Roman V letter H number 2)
a. information regarding the Insurance Company; b. Sub-fund name;
c. reporting period;
d. Sub-fund profile information:
1. investment strategy type;
2. description of investment objectives/strategies, including asset allocation percentages;
3. industry sector of the Sub-fund's investment portfolio;
4. risk category of the Sub-fund;
5. investment manager name;
6. Custodian Bank name;
7. Sub-fund establishment date;
8. NAB per unit of the Sub-fund at the time of establishment, for Sub-funds expressed in units;
9. currency; and
10. NAB valuation frequency;
  e. Sub-fund performance information:
11. total NAB, number of units, and NAB per unit at the end of the reporting period;
12. composition of each type of investment at the end of the reporting period;
13. list of largest investment details listing the top 10 (ten) investments or those representing 80% of total investments of each Sub-fund at the end of the reporting period, with details of investment names, issuer/investee names, and information on the existence of Related Parties; and
14. investment performance development of each Sub-fund, at least:
  a) annual development at the end of each year, at least the shorter of the period since the Sub-fund was issued or the last 5 (five) years; and b) monthly development during the last 12 (twelve) months; f. if a Sub-fund is established for less than 12 (twelve) months, performance information as referred to in letter e number 4) is the investment performance of assets according to the underlying Sub-fund's investment composition. The Company must provide information that this is not Sub-fund performance but the performance of assets matching the Sub-fund's composition, aiming to provide an overview of Sub-fund performance; g. benchmark performance information in the form of performance development of investment instruments or indices that have investment characteristics similar to the Sub-fund for the same duration as the Sub-fund's performance development; h. disclaimer or warning statement that past performance does not reflect the future performance of the PAYDI, in easy-to-understand language and clear, attention-grabbing writing, including printing in different colors, capital letters, or larger font sizes.

IV CONCLUSION
All reporting requirements for new PAYDI approval have been met.

We, the undersigned, hereby declare that the above assessment form has been consistent with the actual conditions and has been completed with sufficient documents. …(filled with city name, date, month, and year) Board of Directors specializing in Insurance Product Development (Filled with job title) Company Actuary (filled with Insurance Company name) (Name) (Name and registration number)

II. COMPANY ACTUARY STATEMENT
We, the undersigned, hereby declare that the premium calculations, technical reserves, and profit testing/asset share for the insurance product …… [filled with the reported PAYDI name] have been consistent with the provisions of applicable laws and regulations and are based on fair assumptions and generally accepted insurance practices. This statement is made truthfully. If it is later found that this statement is incorrect, we are willing to be responsible and may be subject to sanctions according to applicable laws and regulations. …(filled with city name, date, month, and year) Company Actuary (filled with Insurance Company name) signature (Name and registration number)

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

III. DIRECTORATE STATEMENT
We, the undersigned, hereby declare that:

The Insurance Company meets the financial health ratio requirements;
The Insurance Company is not subject to administrative sanctions;
The insurance product ..... [filled with the name of the reported insurance product]
is included in the business plan of the Sharia Insurance Company which has been approved by the shareholders; and
The Insurance Company has an information system and resources supporting the management of PAYDI in accordance with applicable laws and regulations.

This statement is made truthfully. If it is later found that this statement is not true, we are willing to be responsible and may be subject to sanctions in accordance with applicable laws and regulations.

...(filled with city name, date, month, and year) Directorate in charge of insurance product development (job title) signature (Name)

Determined in Jakarta on 14 March 2022
EXECUTIVE HEAD OF SUPERVISOR
OF INSURANCE, PENSION FUNDS,
FINANCING INSTITUTIONS, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
RISWINANDI

APPENDIX IV
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 5 /SEOJK.05/2022 CONCERNING INVESTMENT-LINKED INSURANCE PRODUCTS

FORM FOR REPORTING NEW PAYDI APPROVAL
FOR SHARIA INSURANCE COMPANIES

I. ASSESSMENT FORM FOR NEW PAYDI APPROVAL REPORTING
GENERAL INFORMATION
Company Name
Name and Phone/Email
Contact Person
Technical PIC:
Directorate in charge of
Insurance Product Development:
Number and Date
Reporting Letter
Insurance Product Name
Classification/Business Line
Marketing Target
Insurance Product
Individual Participants
Non-Individual Participants (companies, etc.)
Individual and Non-Individual Participants (companies, etc.)
Short Description
Insurance Product
NO. DESCRIPTION YES NO NOTES
PRELIMINARY ANALYSIS

Insurance Product Status
(Article 28 POJK No.23/POJK.05/2015) a. Never marketed; or b. Changes to an already marketed Insurance Product where the changes include:

risks covered
including exclusions or restrictions on the causes of risks covered;
formulation of Contributions;
changes in risk categories;
assumptions related to
the formation of the formulation of
Contributions;
Provide a brief explanation of the changes made by the Sharia Insurance Company

and/or

method for calculating
Cash Value.

Insurance Product Name
(Article 10 POJK No.23/POJK.05/2015) a. the name of the marketed insurance product meets the requirements:

using the word insurance or a word
with similar meaning; and
does not cause
interpretation that the product is not an insurance product.
State the name of the insurance product to be reported The insurance product name must be used consistently in all insurance product reporting documents b. does not use the name Sub-fund of PAYDI with a name that could cause different interpretations from its investment strategy

The newly reported insurance product
must be listed in the business plan of the
Sharia Insurance Company
(Article 28 POJK
No.23/POJK.05/20

State the title and date of the business plan of the Sharia Insurance Company
4. Fulfillment of Financial Health
and Compliance Requirements
(Article 30 POJK No.23/POJK.05/2015) a. The Sharia Insurance Company meets the financial health ratio requirements State the ratio of achievement of RBC in the last quarter b. The Sharia Insurance Company is not currently subject to administrative sanctions If the company is subject to sanctions, state:

type of violation
number of sanction letter
type of sanction

The Company has own capital of at least
Rp150,000,000,000.00
(one hundred fifty billion rupiah) (for Companies that have never marketed PAYDI before SEOJK PAYDI was implemented) State the own capital based on the latest monthly report.

II DOCUMENT COMPLETENESS ANALYSIS
(Article 32 POJK
No.23/POJK.05/2015)

Cover letter signed by
the Directorate or equivalent of the Sharia Insurance Company (Article 29 POJK No.23/POJK.05/2015) Attach the cover letter
Description of
New Insurance Product
Attach the new insurance product description as referred to in Appendix V SEOJK No.18/SEOJK.05/2016
Risk profile, interest rate,
mortality or morbidity tables, estimated investment returns from Contributions, acquisition costs, administrative costs, and other general costs for calculating the determination of Contributions (Article 26 POJK No.23/POJK.05/2015) Attach the tables used and data sources
Profit testing/asset share documents
(Roman VI number 4 letter j)
Attach profit testing or asset share completed with qualitative explanation of the assumptions used (especially for Contribution growth, claim ratio, and profitability), as well as its relationship with historical data; or
Specimen of Insurance Policy Attach:

Insurance Policy
provisions
policy summary or data
of the Insurance Policy accompanied by dummy
Sharia insurance membership data
Insurance Policy certificate/proof of
membership accompanied by dummy
Sharia insurance membership data (specifically for group insurance products)
example participant list accompanied by

Sharia insurance membership data (specifically for group insurance products) . Actuarial Statement of the Company (Article 26 POJK No.23/POJK.05/2015) In accordance with the Actuarial Statement of the Company as referred to in Roman II of this form
7. Directorate statement
stating that:
a. the company meets the financial health ratio requirements; b. the company is not currently subject to administrative sanctions; c. the reported insurance product is included in the business plan of the Sharia Insurance Company which has been approved by the shareholders ; and (Article 28 and Article 30 POJK No.23/POJK.05/2015) d. The Company has an information system and resources capable of supporting the management of PAYDI (Roman II number 1 letter d) In accordance with the directorate statement as referred to in Roman III of this form
8. Proof of having expert personnel
with the qualification of Deputy Investment Manager with experience in their field of at least 3 (three) years at the managerial level (Explanation of Article 7 paragraph 1 letter d POJK 69/2016) (Roman II number 1 letter b) Attach: ● Deputy Investment Manager Certificate;

curriculum vitae list
of the Deputy Investment Manager; and
Appointment Decree
of the Deputy Investment Manager
Statement that the
person concerned is not working concurrently at the Company and/or other financial service institutions, acting as coordinator of the investment management function, official responsible directly to the Directorate, and has never been subject to license revocation sanctions for Deputy Investment Manager based on laws and regulations in the capital market sector for the last 3 (three) years.

Proof of having an
information system capable of supporting PAYDI management activities (Roman II number 1 letter c) Attach proof of having an information system capable of supporting PAYDI management activities (example: manual of the information system related to PAYDI and copy of forms or information generated from the information system) for Insurance Companies marketing PAYDI for the first time)
Description of marketing methods
and example marketing kit (brochure and others) (Article 11 and Article 20 POJK No.1/POJK.07/2013, Article 52 POJK No.23/POJK.05/2015) Attach example marketing kit
Example Form for Analysis of
Needs and Capacity of
Prospective Policyholders,
Insured, or Participants
(Roman V letter B)
Attach example form for analysis of needs and capacity of prospective Policyholders, Insured, or Participants.
Example Form for Analysis of
Risk Profile of Prospective Policyholders,
Insured, or Participants
(Roman V letter B)
Attach example form for risk profile analysis
Example Form for Statement of
Understanding of Insurance Products
(Roman V letter C number 1 letter c)
Attach example form for statement of understanding of prospective Policyholders, Insured, or Participants.
Product and Service Information Summary (RIPLAY) version
General
Attach example RIPLAY
General version.

(Part VI SEOJK
No.12/SEOJK.07/2014)
(Roman V letter G)
(RIPLAY is not a contract document and differs from offer documents such as brochures and leaflets and differs from insurance product descriptions)
15. RIPLAY Personal version,
which contains illustrations of coverage and investment balance projections Attach example RIPLAY personal version.
16. Example Sharia insurance application letter
(Article 16 POJK
No.1/POJK.07/2013)
Attach example insurance application letter
17. Sub-fund performance report
(fund fact sheet)
Attach example Sub-fund performance report
18. Confirmation documentation
(welcoming call)
Attach confirmation documentation.
19. Cash Value development report
(Roman V letter J)
Attach example
Cash Value development report
20. Proof that agents or
marketing personnel who market PAYDI have:
a. have special agency certification for
PAYDI from a professional certification body in Indonesia in accordance with their business field or from the Company Association Attach photocopy of special agency certificate for PAYDI b. registered with OJK and/or company association insurance in accordance with their business field Attach photocopy of registration mark from the relevant association
c. attended training
regarding PAYDI
Attach photocopy of training materials and attendance list
21. Reporting form for
Joint Insurance Product Approval in the event that PAYDI is marketed jointly with other Sharia Insurance Companies Attach the form as referred to in Appendix IV SEOJK number 18/SEOJK.05/2016
22. Product comparison matrix
before and after changes (specifically for products that have been marketed previously) (Article 28 POJK No.23/POJK.05/2015) Attach comparison matrix

previously marketed)
23. Sharia Supervisory Board statement
Attach Sharia Supervisory Board statement as referred to in Appendix VI SEOJK number 18/SEOJK.05/2016

III COMPLIANCE AND SUBSTANTIVE ANALYSIS

Sharia Insurance Object
a. providing protection from at least 1 (one) type of risk that can be insured (Article 2 POJK No.23/POJK.05/20 15) State the type of risk covered b. in accordance with the scope of business of the Company and in accordance with the principles of insurance that apply generally (Article 9 POJK No.23/POJK.05/ 2015) State the insurance business line in accordance with the classification as referred to in
Appendix V SEOJK
Number
18/SEOJK.05/2016
c. the membership benefits from
PAYDI proposed must at least have a proportion of protection against death risk (Article 4 POJK No.23/POJK.05/20 15) d. the amount of sum assured for protection benefits for risks as referred to above, at least equal to the applicable regulations (Roman III letter B) State the amount of membership sum assured e. insurance membership period at least in accordance with the applicable regulations (Roman III letter A number 1) State the insurance membership period

f. has a specific investment strategy
State the investment strategy for each Sub-fund offered in PAYDI that is reported. g. provides options to prospective policyholders to choose whether to undergo health examination or be subject to a waiting period (Roman III letter A number 6) Explain the underwriting procedure and the form of approval of prospective policyholders.
2. Insurance Policy
a. the benefits agreed upon in the
Insurance Policy are in accordance with the description of the insurance product State the article in the Insurance Policy that regulates it b. provisions within the Insurance Policy must at least contain the following:

General Provisions (Article 11 POJK
No.23/POJK.05/2015) a) timing of the
Sharia insurance coverage
State the article in the
Insurance Policy that regulates it b) description of benefits agreed upon State the article in the Insurance Policy that regulates it c) method of payment of Contributions State the article in the Insurance Policy that regulates it d) grace period (grace period) for payment of Contributions State the article in the Insurance Policy that regulates it

e) exchange rate used for
Sharia Insurance Policies with foreign currency if payment of Contributions and benefits are linked to the rupiah currency State the article in the Insurance Policy that regulates it The exchange rate used for Insurance Policies with foreign currency must be an equivalent rate issued by Bank Indonesia at the time of payment (Article 16 POJK No.23/POJK.05/2015) f) time recognized as the time of receipt of payment of Contributions State the article in the Insurance Policy that regulates it g) policy of the Sharia Insurance Company set if payment of Contributions is made after the agreed grace period State the article in the Insurance Policy that regulates it h) period during which the Sharia Insurance Company cannot review the validity of the insurance contract (incontestable period) on long-term insurance products State the article in the Insurance Policy that regulates it i) cooling off / free-look period State the article in the Insurance Policy that regulates the free-look period provisions and the costs charged in the event that the Policyholder cancels the Insurance Policy within that period.

j) investment strategy
State the article in the
Insurance Policy that regulates it
In the event that the company forms more than one investment sub-fund, fill in this clause including the name of the sub-fund and investment strategy of each investment sub-fund formed k) right of the Policyholder to choose one or more investment sub-funds State the article in the Insurance Policy that regulates it l) fund switching (fund transfer) State the article in the Insurance Policy that regulates it m) right of the Policyholder to not pay Contributions in a certain period (Contribution leave). Contribution leave is only permitted if there is a request or approval from the Policyholder at most 30 days before it takes effect State the article in the Insurance Policy that regulates it

n) details of all
Contributions for tabarru’, ujrah, and costs charged to the Policyholder individually or to the participant investment fund (if any) State the article in the Insurance Policy that regulates it Details of costs charged to the Policyholder individually include:

tabarru’ Contribution
ujrah for management
of activities other than investment (acquisition costs, costs of maintaining the Insurance Policy, and corporate profit)
ujrah / cost
for management of investment activities (costs of fund transfer, withdrawal costs, and corporate profit) Details of costs charged to the participant investment fund include investment management/management costs, account fees, and taxes on investment returns These costs must meet Roman IV letter G o) obligation of the Sharia Insurance Company to submit reports on the development of Cash Value periodically at least every Contribution payment period State the article in the Insurance Policy that regulates it Reporting period every Contribution payment period if less than 3 (three) months or every 3 (three) months if Contributions are paid every 3 (three) months or more. p) clause for termination of membership, whether from the company or from the Policyholder or Participant, including conditions State the article in the Insurance Policy that regulates it

and causes q) conditions and procedures for filing claims, including relevant and necessary supporting evidence in filing claims State the article in the Insurance Policy that regulates it r) procedures for settlement and payment of claims State the article in the Insurance Policy that regulates it s) clause for dispute resolution which includes among others mechanisms for resolution within the court system and outside the court system and selection of the place of residence for dispute resolution State the article in the Insurance Policy that regulates it Dispute resolution outside the court system is conducted through an Alternative Dispute Resolution Institution (LAPS) which is included in the list of LAPS established by OJK Dispute resolution in court includes including through religious courts t) language used as reference in the event of disputes or differences of opinion, for Insurance Policies printed in 2 (two) languages or more Filled with the article number stated in the Insurance Policy u) mechanism for conveying information in the event of changes costs (Article 12 POJK No. 1/POJK.07/2013) State the article in the Insurance Policy that regulates it v) formation of Sub-funds State the article in the Insurance Policy that regulates it.

w) formation of Cash Value
State the article in the
Insurance Policy that regulates it
Fill in this clause including the method and time of formation of units or participant investments from Contributions. x) method and frequency of calculation of NAV or NAV per unit of each Sub-fund managed by the company on the insurance product reported State the article in the Insurance Policy that regulates it. Fill in this clause including the method and time of formation of units or participant investments from Contributions. y) additional features and requirements or criteria for obtaining additional benefits. State the article in the Insurance Policy that regulates it.
2) Dispute Resolution Provisions (Article 17 and Article
18 POJK No.23/POJK.05/2015) a) there are no provisions in the Insurance Policy that can be interpreted as preventing the Policyholder or Participant from pursuing legal action so that the Policyholder or Participant must accept the rejection of claim/benefit payment b) there are no provisions in the Insurance Policy that can be interpreted as restricting legal action by the parties in the event of disputes regarding the provisions of the Insurance Policy

c) provisions in the Insurance
Policy regarding dispute resolution over insurance agreements conducted outside the court provide alternative options for dispute resolution through alternative dispute resolution institutions as regulated in laws and regulations regarding alternative dispute resolution institutions in the financial service sector State the article in the Insurance Policy that regulates it Dispute resolution outside the court system is conducted through an Alternative Dispute Resolution Institution (LAPS) which is included in the list of LAPS established by OJK Dispute resolution in court includes including through religious courts d) provisions in the Insurance Policy regarding dispute resolution over insurance agreements conducted through the court do not restrict the choice of court only to the district court at the location of the Sharia Insurance Company
3) Application of Sharia insurance contracts in the Insurance Policy
(Article 18 POJK
No.23/POJK.05/2015 and POJK
No.69/POJK.05/2016) a) Contracts used
i. Tabarru’ contract
among Participants
State the article in the
Insurance Policy that regulates it

ii. Wakalah bil ujrah contract between
Participants and the
Sharia Insurance Company in activities other than investment State the article in the Insurance Policy that regulates it
iii. Wakalah bil ujrah
contract, mudharabah, or mudharabah musytarakah between Participants and the Sharia Insurance Company in investment activities other than participant investment funds (among other tabarru’ funds) State the article in the Insurance Policy that regulates it
iv. Wakalah bil ujrah
contract, mudharabah, or mudharabah musytarakah between Participants and the Sharia Insurance Company in participant investment fund investment activities State the article in the Insurance Policy that regulates it b) Rights and obligations of Participants
i. Rights of individual Participants
in the tabarru’ contract, including the right to obtain insurance benefits, underwriting surplus distribution and/or receive refund of a portion of Contributions in the event that the Insurance Policy cancelled State the article in the Insurance Policy that regulates it

ii. Rights of collective Participants
in the tabarru’ contract, including obtaining investment returns and underwriting surplus State the article in the Insurance Policy that regulates it
iii. Obligations of Participants
individually or collectively in the tabarru’, wakalah bil ujrah, mudharabah, and mudharabah musytarakah contracts, including paying Contributions and providing remuneration to the Sharia Insurance Company State the article in the Insurance Policy that regulates it c) Rights and obligations of the Sharia Insurance Company
i. Rights
of the Sharia Insurance
Company in the wakalah bil ujrah contract for activities other than investment, including obtaining ujrah State the article in the Insurance Policy that regulates it
ii. Rights
of the Sharia Insurance Company in the wakalah bil ujrah contract, mudharabah, or mudharabah musytarakah for investment activities of tabarru’ funds, including obtaining ujrah or share of investment returns State the article in the Insurance Policy that regulates it

iii. Obligations
of the Sharia Insurance Company in the wakalah bil ujrah contract, mudharabah, and mudharabah musytarakah for activities other than investment and investment activities, including for executing powers granted by Participants and for covering losses caused by deliberate errors, negligence, or breach of contract by the Sharia Insurance Company State the article in the Insurance Policy that regulates it
iv. Powers granted by
Participants individually and/or collectively to the Sharia Insurance Company, including conducting marketing activities, underwriting, administration, portfolio management for risk, fund management, claim payment, and or investment of tabarru’ funds State the article in the Insurance Policy that regulates it d) Amount, time, and method of allocation of Contributions for:

i. Tabarru’ fund Contributions
State the article in the
Insurance Policy that regulates it
ii. ujrah
State the article in the
Insurance Policy that regulates it
iii. participant
investment funds
State the article in the
Insurance Policy that regulates it e) Amount, time, and method of payment of investment returns in the event that the Insurance Product uses the mudharabah or mudharabah musytarakah contract State the article in the Insurance Policy that regulates it f) Allocation of use of underwriting surplus for tabarru’ funds, participants, and/or company State the article in the Insurance Policy that regulates it g) Obligation of the company to provide qardh in the event that tabarru’ funds are insufficient to pay insurance benefits/ claims State the article in the Insurance Policy that regulates it
c. Insurance Policies issued
and marketed within the jurisdiction of Indonesia are made in the Indonesian language. If necessary, Insurance Policies can be issued in foreign languages or regional languages alongside the Indonesian language (Article 20 POJK No.23/POJK.05/2015)

d. specimen of Insurance Policy has stated the portion of Contributions received by the company and the portion of Contributions forwarded to the insurance brokerage company as compensation for brokerage services (if using insurance brokerage services) (Explanation of Article 29 Law No. 40 of 2014) Specify the section in the Insurance Policy that governs it In the event that the Insurance Company markets Insurance Products through insurance brokers, attach the section from the Insurance Policy that states the portion of Contributions received by the insurance company and forwarded to the insurance brokerage company

Description of New
Insurance Product
Attach the description of the new Insurance Product as referred to in
Appendix V
SEOJK No.18/SEOJK.05/2016
The description of the new insurance product also contains information as follows:
(Roman numeral VI number 4) a. explanation regarding the choice of Sub-funds and investment strategy of the Sub-fund; b. nominal and/or percentage amount of Contributions allocated to form the Sub-fund;
c. details of all
costs/ujrah charged to the Policyholder including the amount, method, and time of charging; d. description regarding the method and frequency of NAV valuation and NAV per unit of the Sub-fund; e. information regarding the Custodian Bank which at least contains the name and address of the Custodian Bank; f. comparison between the amount of sum insured or insurance benefits for mortality risk in PAYDI and total periodic or single Contributions;

g. description regarding investment performance:

Sub-funds in the period
of at least 5
(five) years;
Sub-funds in the actual period since the Sub-fund
was formed in the event the Sub-fund was formed less than 5 (five) years; or
investment instruments
or indices that have similar investment characteristics to the Sub-fund, in the event the Sub-fund is being marketed for the first time by the Company; h. description regarding the basis for setting the assumed rate of return used in the creation of illustrations in RIPLAY.

Profit testing/asset share
a. profit testing prepared using
2 (two) types of assumptions, namely the best estimate assumption and the best estimate assumption plus a risk margin for deterioration. (Roman numeral VI number 5) b. the reasonableness of the assumptions used.
c. surplus from the
insurance product reported is sufficiently adequate for the Sharia Insurance Company.
Marketing Media Attach marketing brochures
There is a warning statement to prospective
Policyholders,
Insureds, or Participants as follows:
"PAYDI (product name) is an insurance product.
The investment component in
PAYDI carries risk.
Prospective Policyholders,
Insureds, or Participants are required to read and understand the product information summary before deciding to purchase PAYDI. Past investment performance of PAYDI does not guarantee future investment performance of PAYDI."
Product and Insurance Service Information Summary
a. product information summary consists of product information summary intended for the general public and product information summary created individually/personally. b. insurance product information summary must at least contain:
(Article 8 POJK
No.1/POJK.07/2013 and
Part VI SEOJK No.12/SEOJK.07/2014)
(Roman numeral V letter G number 2)

name and logo
of the Company;
statement that
the Company has a business license and is supervised by the Financial Services Authority;
name of the PAYDI marketed;
statement that
the PAYDI marketed is an insurance product;
duration of coverage or participation;
PAYDI benefits include:
a) value and basis for setting benefits for risk coverage and benefits linked to investment; b) method for calculating benefits linked to investment; and c) requirements or conditions for benefits to be provided by the Company, including the scope of risks guaranteed, risks that are excluded, and risks that are not guaranteed during the waiting period (waiting period);
risks borne by
the Policyholder,
Insured, or
Participant:
a) types of risks and definitions for each risk; b) statement printed in language that is easy to understand and clear and attracts attention, that:
i. benefit values
can increase or decrease;
ii. investment performance
of Sub-funds is guaranteed; and
iii. benefit values
related to investment can be smaller than total funds invested;
procedures or methods:
a) application to become a Policyholder, including age requirements and health conditions of the Policyholder or Participant; b) payment of Contributions including amount, frequency, and period of payment; c) formation and calculation of Cash Value, including the amount of Contributions allocated for the formation of Cash Value; d) submission, settlement and payment of claims; and e) settlement of complaints and disputes;
types, amounts, and
timing of cost charges during the period of coverage or participation, including costs charged to the Policyholder in the event the policy is cancelled and costs charged during the Contribution holiday period;
explanation regarding
Sub-funds, at least including:
a. name, type of investment strategy, composition of investment portfolio, and category/level of risk for each Sub-fund and sector of industry from the portfolio of investment of the Sub-fund; and b. frequency and method of calculating NAV and NAV per unit.
description regarding additional features
and requirements to obtain benefits of additional features;
description regarding investment performance of Sub-funds in a period of at least
5 (five) years or in the actual period since the Sub-fund was formed for Companies selling the product for less than 5 (five) years compared to the performance of investment instruments or indices that have investment characteristics similar to the Sub-fund;
provisions regarding
grace period for payment of Contributions, and rights of the Policyholder or Participant to cancel the Insurance Policy during the free look period;
telephone number and email address
of the customer service center (call center) owned by the Company;
illustration of coverage or participation that contains at least:
a) details of Contributions; b) costs charged to the Policyholder or Participant; c) investment results;

d) protection benefits for mortality risk; e) protection benefits for other risks, if any; f) Cash Value balance; which are presented annually, during the period of coverage or participation.
16) illustrations must be made
based on low, medium, and high scenarios by considering:
a) past performance of
Sub-funds; b) performance of investment instruments or indices that have investment characteristics similar to Sub-funds accompanied by an explanation regarding the name of the investment instrument or index used as a reference, in the event the Sub-fund is being marketed for the first time by the Company; and/or c) potential deterioration of investment performance, in the event there are indications of deterioration of investment results with the assumed rate of return after tax as regulated in Roman numeral V letter G number 3;
17) illustration of the value of funds received by the Policyholder
if they:
a) cancel the policy during the free look period or the first 5 (five) years of the coverage period; b) withdraw part or all of the Cash Value; after considering all costs charged in connection with the cancellation/ termination of the Insurance Policy or withdrawal of Cash Value;
18) statement affirming that
growth of benefit values as referred to in number 15 is merely an illustration;
19) information regarding
additional insurance products (riders) that can be chosen by the Policyholder;
20) other additional
information;
21) in the product information summary created
personally, illustrations as referred to in numbers 15) and 17) are adjusted to the profile of the prospective Policyholder;
22) Type of contract used.

Example of Sharia Insurance Application Form (SPA)
Attach an example SPA containing matters including information regarding the suitability between the customer profile and the insurance product offered

Attach an example of the Sharia insurance application form containing matters including:
a. Participant identity b. information regarding the suitability between the customer profile and the insurance product offered
c. approval of the tabarru’ contract between
Participants, including the amount of tabarru’ Contributions d. approval of the wakalah bil ujrah contract with the Sharia Insurance Company in activities other than investment, including the amount of ujrah e. approval of the wakalah bil ujrah contract, mudharabah, or mudharabah musytarakah with the Sharia Insurance Company in the management of tabarru’ funds investment, including the amount of ujrah or share of investment returns f. approval of the use of underwriting surplus

Contribution Calculation
a. Contributions have been in accordance with the benefits promised, set at a level that is sufficient, not excessive, and not applied in a discriminatory manner (Article 3 POJK No.23/POJK.05/2015) Specify the section in the description of the insurance product that contains the formulation of the Contribution calculation b. the determination of risk Contributions has considered all risk coverage borne as described in the description of the insurance product or specimen of the Insurance Policy
c. the formulation of the Contribution calculation in the description
of the insurance product has been in accordance with the benefits of the insurance that will be provided Specify the section in the description of the insurance product that contains the formulation of the Contribution calculation d. the determination of Contributions considers at least:
(Article 26 POJK
No.23/POJK.05/2015)

Pure Contributions calculated
based on risk profile, rate of return, mortality table, or morbidity table Explain regarding the suitability between Pure Contributions and risk profile data as referred to in
Appendix V
SEOJK No.
18/SEOJK.05/2016
rate of return Specify the assumption
of the rate of return used
acquisition ujrah Specify the proportion
of the acquisition cost component in
Gross Contributions
administrative ujrah Specify the proportion
of the administrative cost component in
Gross Contributions
other general ujrah Specify the proportion
of the other general cost component in
Gross Contributions
estimated investment results
Attach investment results data and investment strategy supporting the estimated investment results e. the methodology for calculating Contributions for new insurance products reported has been in accordance with the principles of insurance generally applicable and commonly used (best practice and common practice)

f. assumptions used in the calculation of Contributions use numbers that are reasonable and realistic

Reporting of Cash Value Development
(Roman numeral V letter J)
Reporting of Cash Value development contains at least the following:
(Roman numeral V letter J number 5) a. name of the Policyholder; b. reporting period;
c. product name;
d. Sharia insurance amount; e. opening Cash Value balance from the details of each Sub-fund; f. payment of Contributions; g. details of additions to Cash Value from each Sub-fund in the current period; h. details of reductions to Cash Value from each Sub-fund in the current period;
i. details of all
costs/ujrah charged to the Policyholder or
Participant with reference to the provisions as referred to in Roman numeral IV letter G number 2; j. closing Cash Value balance, including details of each Sub-fund; k. value that can be obtained by the Policyholder or Participant if a partial or full withdrawal of Cash Value is made on the date of the Cash Value development report, after considering costs;
l. information regarding
consequences if
Contributions are not paid during the grace period (grace period) for payment of Contributions; m. information regarding the rights of the Policyholder, or Participant to submit a request for Contribution holiday (contribution holiday) along with the consequences of the right to Contribution holiday; n. value and unit price information regarding changes in costs/ujrah charged to the Policyholder or Participant in the upcoming period, if any; and o. provision of additional feature benefits to the consumer concerned since the submission of the Cash Value development report of the previous period.
Cash Value
The amount of Cash Value is at least equal to the accumulation of funds to the policyholder and meets the following provisions:
(Roman numeral III letter C) a. for PAYDI that has Sub-funds stated in the form of units, determined based on the number of units and NAV per unit for Sub-funds that exist at a certain time b. for PAYDI that has Sub-funds stated in the form of non-units, determined based on the portion of Contributions allocated for the formation of Cash Value, results of fund development, and costs charged in accordance with the provisions of the Insurance Policy.
Proof of having an information system capable
of supporting PAYDI management activities, which at least is able to provide:
(Roman numeral II number 1 letter c)
Attach proof of having an information system capable of supporting PAYDI management activities (example: manual information system related to PAYDI) for Insurance Companies marketing PAYDI for the first time.) a. illustrations of coverage required in the context of offering PAYDI to prospective Policyholders or Participants; b. daily NAV information and NAV per unit in the event Sub-funds are stated in units, to be stated on the Company's website;
c. daily information on Cash Value
for each
Policyholder or Participant; d. Cash Value development reports; e. Sub-fund development reports; f. financial reports that must be prepared in accordance with the provisions of legislation and generally accepted accounting standards; and g. information and reports in the context of monitoring PAYDI performance as referred to in the Financial Services Authority Regulation regarding insurance products and marketing of insurance products.
Sub-fund Performance Report
(fund fact sheet), containing:
(Roman numeral V letter H number 2) a. information regarding the Sharia Insurance Company; b. name of the Sub-fund;
c. reporting period;
d. information regarding Sub-fund profile:

type of investment strategy;
explanation regarding
investment objectives/strategy, including percentage of asset allocation;
industry sector of the
investment portfolio of
Sub-funds;
risk category of
Sub-funds;
name of the
investment manager;
name of the Custodian Bank;
date of formation of
Sub-funds;
NAV per unit of Sub-fund
at the time of formation, for
Sub-funds stated in units;
currency; and
frequency of NAV valuation;
e. Sub-fund performance information:
total NAV, number of units,
and NAV per unit at the end of the reporting period;
asset composition of each
Sub-fund at the end of the reporting period; and
list of details of the largest investments
listing the top 10 (ten) largest investments or those representing 80% of total investment of each Sub-fund at the end of the reporting period, with details of investment name, name of issuer/investee party and information regarding the existence or non-existence of Related Parties; and
development of investment performance of each
Sub-fund, at least:
a) annual development at the end of each year at least the shorter of the period since Sub-fund issuance or in a period of at least 5 (five) years last; and b) monthly development during the last 12 (twelve) months; f. in the event a new Sub-fund is formed less than 12 (twelve) months, performance information as referred to in letter e number 4) is the investment performance of assets in accordance with the investment composition of the underlying Sub-fund. The Company must provide information that such performance is not Sub-fund performance but is the performance of assets that match the Sub-fund composition with the purpose of providing an overview of Sub-fund performance; g. benchmark performance information in the form of development of performance of investment instruments or indices that have investment characteristics similar to Sub-funds for the same duration as the development of Sub-fund performance; h. disclaimer or warning statement that past performance does not guarantee future performance of the PAYDI, in language that is easy to understand and written clearly and attracts attention, among others printed in a different color, capital letters, or larger font size.

IV CONCLUSION
All reporting requirements for the approval of new PAYDI have been met

23/25
We, the undersigned, hereby declare that the above assessment form has been in accordance with the actual situation and has been completed with sufficient documents. ...(filled with city name, date, month, and year) Board of Directors responsible for Insurance Product Development (Filled with job title) Company Actuary ... (filled with company name) signature signature (Name) (Name and registration number)

24/25
II. STATEMENT OF COMPANY ACTUARY
We, the undersigned, hereby declare that the calculation of Contributions, technical reserves, and profit testing/asset share for the insurance product … [filled with the name of the PAYDI reported] has been in accordance with the provisions of applicable legislation and is based on reasonable assumptions and generally applicable Sharia insurance practices. Thus, this statement is made truthfully. If it is later found that this statement is not true, then we are willing to take responsibility and may be subject to sanctions in accordance with the provisions of applicable legislation. … (filled with city name, date, month and year) Company Actuary … (filled with company name) signature (Name and registration number)

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

III. BOARD OF DIRECTORS STATEMENT
We, the undersigned, hereby declare that:
a. The Sharia Insurance Company meets the financial health ratio requirements; b. The Sharia Insurance Company is not currently subject to administrative sanctions;
c. the insurance product..... [filled with the name of the PAYDI reported] is included
in the company's business plan which has been approved by the shareholders; and d. The Sharia Insurance Company has an information system and resources that support the management of PAYDI in accordance with the provisions of applicable legislation. Thus, this statement is made truthfully. If it is later found that this statement is not true, then we are willing to take responsibility and may be subject to sanctions in accordance with the provisions of applicable legislation. … (filled with city name, date, month, year) Board of Directors responsible for insurance product development (job title) signature (Name)

Issued in Jakarta on 14 March 2022
EXECUTIVE HEAD OF SUPERVISOR
OF INSURANCE, PENSION FUNDS,
LENDING INSTITUTIONS, AND
OTHER FINANCIAL SERVICES INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
RISWANDI

Financial Services Authority Circular Number 5/SEOJK.05/2022 on Insurance Products Linked to Investment

Lineage: Amended

Timeline