Regulation of the Board of Commissioners of the Financial Services Authority Number 46/PADK.05/2025 Concerning General Insurance, Sharia General Insurance, Life Insurance, and Sharia Life Insurance Business Lines

COPY
REGULATION OF THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 46/PADK.05/2025 CONCERNING GENERAL INSURANCE, SHARIA GENERAL INSURANCE, LIFE INSURANCE, AND SHARIA LIFE INSURANCE BUSINESS LINES

BY THE GRACE OF GOD THE ALMIGHTY,

THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to implement the mandate of Article 3A paragraph (2) of the 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, as amended by the Financial Services Authority Regulation Number 36 of 2024 concerning Amendments to the 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, it is necessary to regulate the classification and standardization of business lines in general insurance, Sharia general insurance, life insurance, and Sharia life insurance; b. that based on the considerations as referred to in letter a, it is necessary to establish a Regulation of the Board of Commissioners of the Financial Services Authority concerning General Insurance Business Lines, Sharia General Insurance Business Lines, Life Insurance Business Lines, and Sharia Life Insurance Business Lines;

Recalling:
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), as amended by the Financial Services Authority Regulation Number 36 of 2024 concerning Amendments to the 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

This copy is in accordance with the original
Head of the Legal Development Directorate
Legal Department signed.
Aat Windradi
2024 Number 48/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 116/OJK);

DECIDES:

To establish: A REGULATION OF THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY CONCERNING GENERAL INSURANCE BUSINESS LINES, SHARIA GENERAL INSURANCE BUSINESS LINES, LIFE INSURANCE BUSINESS LINES, AND SHARIA LIFE INSURANCE BUSINESS LINES.

CHAPTER I
GENERAL PROVISIONS

Article 1
Regulations concerning business lines:
a. general insurance and Sharia general insurance; and b. life insurance and Sharia life insurance, are regulated in the Appendix of this Regulation of the Board of Commissioners of the Financial Services Authority.

Article 2
This Regulation of the Board of Commissioners of the Financial Services Authority shall come into force on the date of establishment.

Established in Jakarta on 23 December 2025

EXECUTIVE HEAD
INSPECTOR OF INSURANCE,
GUARANTEE, AND PENSION FUNDS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
OGI PRASTOMIYONO signed.

APPENDIX
REGULATION OF THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 46/PADK.05/2025 CONCERNING GENERAL INSURANCE, SHARIA GENERAL INSURANCE, LIFE INSURANCE, AND SHARIA LIFE INSURANCE BUSINESS LINES

I. General Provisions
In this Regulation of the Board of Commissioners of the Financial Services Authority, the following terms are defined:

1. Company means an insurance company and a Sharia insurance company.
2. Insurance Company means a general insurance company and a life insurance company.
3. Sharia Insurance Company means a Sharia general insurance company and a Sharia life insurance company.
4. General Insurance Business is a risk underwriting service business that provides compensation to the insured or policyholder for losses, damages, arising costs, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event.
5. Life Insurance Business is a business that provides risk management services that provide payment to the policyholder, insured, or other entitled parties in the event of the death or survival of the insured, or other payments to the policyholder, insured, or other entitled parties at a certain time as regulated in the agreement, the amount of which has been determined and/or is based on the results of fund management.
6. Reinsurance Business is a re-underwriting service business against risks faced by Insurance Companies, guarantee companies, or other reinsurance companies.
7. Sharia General Insurance Business is a risk management business based on Sharia principles to mutually help and protect by providing compensation to participants or policyholders for losses, damages, arising costs, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event.
8. Sharia Life Insurance Business is a risk management business based on Sharia principles to mutually help and protect by providing payments based on the death or survival of participants, or other payments to participants or other entitled parties at a certain time as regulated in the agreement, the amount of which has been determined and/or is based on the results of fund management.
9. Sharia Reinsurance Business is a risk management business based on Sharia principles over risks faced by Sharia Insurance Companies, Sharia guarantee companies, or other Sharia reinsurance companies.
10. General Insurance Company is a company that conducts General Insurance Business.
11. Life Insurance Company is a company that conducts Life Insurance Business.
12. Sharia General Insurance Company is a company that conducts Sharia General Insurance Business.
13. Sharia Life Insurance Company is a company that conducts Sharia Life Insurance Business.
14. Reinsurance Company is a company that conducts Reinsurance Business.
15. Sharia Reinsurance Company is a company that conducts Sharia Reinsurance Business.
16. Ceding Company means:
    a. a General Insurance Company that transfers part of its risk to a Reinsurance Company or another General Insurance Company; b. a Sharia General Insurance Company that transfers part of its risk to a Sharia Reinsurance Company, a Sharia unit within a Reinsurance Company, another Sharia General Insurance Company, or a Sharia unit within a General Insurance Company;
    c. a Sharia unit within a General Insurance Company that transfers part of its risk to a Sharia Reinsurance Company, a Sharia unit within a Reinsurance Company, a Sharia General Insurance Company, or a Sharia unit within another General Insurance Company;
    d. a Life Insurance Company that transfers part of its risk to a Reinsurance Company; e. a Sharia Life Insurance Company that transfers part of its risk to a Sharia Reinsurance Company or a Sharia unit within a Reinsurance Company; f. a Sharia unit within a Life Insurance Company that transfers part of its risk to a Sharia Reinsurance Company or a Sharia unit within a Reinsurance Company; g. a guarantee company that transfers part of its risk to a Reinsurance Company; or h. a Sharia guarantee company or a Sharia unit within a guarantee company that transfers part of its risk to a Sharia Reinsurance Company or a Sharia unit within a Reinsurance Company.
17. Insurance Product is a risk underwriting/management service program conducted by General Insurance Companies and/or Life Insurance Companies, including those conducted based on Sharia principles.
18. Investment-Linked Insurance Product, hereinafter referred to as PAYDI, is an Insurance Product that provides at least death risk protection and provides benefits referring to the investment results of a fund pool specifically formed for the Insurance Product, whether stated in unit form or not.
19. Sharia Principle is an Islamic legal principle in insurance activities based on fatwas issued by institutions having authority in setting fatwas in the Sharia field.

II. General Insurance and Sharia General Insurance Business Lines
A. General
The business activities of General Insurance Companies and Sharia General Insurance Companies must be conducted in accordance with the types of general insurance business lines as follows:

1. property insurance;
2. motor vehicle insurance;
3. third party liability insurance for motor vehicles;
4. cargo insurance;
5. marine hull insurance;
6. marine liability insurance;
7. aviation hull insurance;
8. satellite insurance;
9. onshore energy insurance (oil and gas);
10. offshore energy insurance (oil and gas);
11. engineering insurance;
12. liability insurance;
13. personal accident insurance;
14. health insurance;
15. credit insurance/Sharia financing;
16. trade credit insurance;
17. suretyship/Sharia suretyship;
18. PAYDI;
19. travel insurance;
20. moveable all risk insurance; and
21. miscellaneous insurance.

B. Classification of Business Lines

1. Property Insurance
   a. Insurance Products that insure property against risks of fire, lightning, explosion, aircraft impact or objects falling from aircraft, and smoke (FLEXAS - Fire, Lightning, Explosion, Aircraft Impact, and Smoke), including but not limited to industrial all risks policies, Munich Re wording, property all risks Munich Re wording, commercial all risks, manuscript wording, Association of British Insurers (ABI) wording, Mark IV/V, comprehensive machinery insurance, electronic equipment insurance, and other property policies that insure FLEXAS risks. b. Property insurance can insure risk extensions including:

1. earthquake, namely property insurance that provides financial protection to the insured/participant against risks of damage or loss caused by earthquakes, volcanic eruptions, including following impacts such as building collapse, post-earthquake fires, liquefaction, or tsunamis;
2. property all risks/industrial all risks, namely property insurance that provides comprehensive protection to the insured/participant against all forms of damage or loss risks to property, except risks explicitly excluded in the insurance policy;
3. terrorism and sabotage, namely property insurance that provides protection to the insured/participant against damage or loss directly caused by acts of terrorism or sabotage, whether against property or business operations;
4. business interruption, namely property insurance that provides compensation to the insured/participant for loss of income or business profit resulting from the cessation of business operations due to physical damage insured under the property insurance policy; and
5. catastrophic/disaster, namely property insurance that provides protection against large losses due to large-scale (catastrophic) disasters that are rare but have very destructive and wide-ranging impacts.

2. Motor Vehicle Insurance
   a. Insurance Products that provide protection against loss and/or damage to motor vehicles and/or interests insured, based on terms and conditions, including risks such as collision, impact, rollover, skidding, theft, and other risks insured in the policy. b. Motor vehicle insurance is divided into 2 (two) types of coverage, including:

1. Comprehensive; and
2. Total Loss Only.
   c. Motor vehicle insurance can insure risk extensions including:
3. riots, terrorism, and civil commotion, namely motor vehicle insurance that provides protection against damage or loss of motor vehicles caused by riots, civil commotion, strikes, malicious acts, and terrorism;
4. disasters, namely motor vehicle insurance that provides protection against loss or physical damage to motor vehicles caused directly by disasters such as floods, typhoons, earthquakes, and tsunamis; and
5. driver and passenger personal accident, namely motor vehicle insurance that provides financial protection against physical accident risks experienced by drivers and passengers of motor vehicles while using or being in the insured vehicle.
   d. In the event that General Insurance Companies and Sharia General Insurance Companies sell motor vehicle insurance by insuring risk extensions as referred to in number 2 letter c, the recording of the risk extension is combined with the motor vehicle business line.

3. Third Party Liability Insurance for Motor Vehicles
   Insurance Products that provide financial protection to the owner or driver of a motor vehicle for legal liability to pay compensation to third parties who suffer loss or damage due to accidents caused by the insured/participant's motor vehicle.

4. Cargo Insurance
   Insurance Products that provide protection against risks of damage, loss, theft, unloading, transport accidents, fire, and sea perils during the goods shipping process, whether via land, sea, air, or multimodal routes.

5. Marine Hull Insurance
   Insurance Products that provide protection against risks of damage or loss to ships due to sea perils, including bad weather, collision, grounding, stranding, sinking, and also insure risks of fire, explosion, piracy, jettison, including negligence of the captain/crew.

6. Marine Liability Insurance
   a. Insurance Products that provide protection to the insured/participant from legal liability to third parties arising from the operation of ships or activities related to maritime affairs. b. In marine liability insurance, there are sub-classifications of insurance, at least including:

1. Ship Repairer’s Liability Insurance, namely Insurance Products that insure liability for damage to ships (hull, machinery, or equipment) while under repair, and third-party injuries arising from repair operations;
2. Protection and Indemnity Insurance, namely Insurance Products that insure the legal liability of ship owners, operators, or charterers to third parties arising from ship ownership and/or operation, including pollution, cargo damage, ship wreck removal costs, and crew injuries;
3. Charterer’s Liability Insurance, namely Insurance Products that insure the legal liability of ship charterers for damage to or loss of the ship itself, as well as legal liability related to the operation of the ship;
4. Freight Forwarders Liability Insurance, namely Insurance Products that insure the legal liability of freight forwarders for loss, damage, or mishandling of cargo, as well as legal liability to third parties arising from shipping, storage, or handling activities;
5. Terminal Operator’s Liability (port liability) Insurance, namely Insurance Products that insure the legal liability of port/terminal operators for ship cargo or damage to property or third-party injuries due to port/terminal operations or management.

7. Aviation Hull Insurance
   a. Insurance Products that provide compensation for loss or damage to the airframe and engine of aircraft and/or other equipment. b. In aviation hull insurance, there are sub-classifications of insurance, namely:

1. Aviation Liability Insurance, namely Insurance Products that provide protection for legal liability to third parties for injury, death, or property damage caused by aircraft; and
2. Passenger Liability Insurance, namely Insurance Products that provide protection for legal liability to operators for injury or death of passengers inside the aircraft.

8. Satellite Insurance
   Insurance Products that provide protection against damage or loss to the satellite itself, including structural damage, before and during launch, while in orbit, and third-party legal liability.

9. Onshore Energy Insurance (Oil and Gas)
   Insurance Products that provide protection against damage in energy industry activities operating on land. This insurance covers risks such as fire, explosion, mechanical damage, operational disruption, up to third-party legal liability risks.

10. Offshore Energy Insurance (Oil and Gas)
    Insurance Products that provide protection for installations and operations of energy exploration and production in maritime areas.

11. Engineering Insurance
    a. Insurance Products that provide protection against damage or loss due to material damage and third-party legal liability during the construction period, erection, maintenance period, as well as damage or loss to machinery or electronic equipment including installations. b. Engineering insurance is divided into 2 (two) groups, namely:

1. project engineering insurance; and
2. non-project engineering insurance.
   c. Project engineering insurance as referred to in letter b number 1) insures risks including:
3. Contractor All Risk, namely Insurance Products that provide protection for construction projects against unexpected physical damage during the construction, testing & commissioning, and maintenance periods; and
4. Erection All Risk, namely Insurance Products that provide protection against risks of installation of mechanical and electrical equipment or installations during the erection period, testing & commissioning period, including protection during the maintenance period.
   d. Non-project engineering insurance as referred to in letter b number 2) insures risks including:
5. Electronic Equipment, namely Insurance Products that provide protection against sudden and unexpected physical damage to electronic equipment;
6. Machinery Breakdown, namely Insurance Products that provide protection against sudden machine production damage during the operational period within the coverage/membership period;
7. Loss of Profit Following Machinery Breakdown, namely Insurance Products that provide protection against financial loss due to the cessation of business activities due to machine damage;
8. Boiler & Pressure Vessel, namely Insurance Products that provide protection against boilers and pressure vessels from explosion or sudden damage;
9. Deterioration of Stock, namely Insurance Products that provide protection against stored goods damaged due to cooling system or freezer failure;
10. Civil Engineering Completed Risk, namely Insurance Products that provide protection for completed infrastructure (roads, bridges, dams) from damage due to natural disasters, accidents, and fire;
11. Contractor's Plant and Machinery, namely Insurance Products that provide protection against damage or loss of heavy equipment and construction equipment used at project sites, whether in use, stopped, dismantled, repaired, or reinstalled after successful testing;
12. Comprehensive Machinery, namely Insurance Products that provide protection against various risks to machines, including damage, legal liability, and business interruption; and
13. Heavy Equipment, namely Insurance Products that provide protection against risks of damage or loss of heavy equipment.

12. Liability Insurance
    a. Insurance Products that provide protection to the insured/participant from legal liability arising to third parties. b. In liability insurance, there are sub-classifications of insurance, including:

1. Comprehensive General Liability
   Insurance Products that insure the legal liability of the insured/participant for claims suffered due to bodily injury or property damage risks occurring in connection with the business conducted by the insured/participant, during the coverage/membership period and within the coverage area, including all court costs and legal processes.
2. Employer’s Liability
   Insurance Products that insure the legal liability of employers to their employees for claims due to risks of death, permanent/temporary disability, and treatment costs occurring while performing work ordered by the employer, including all court costs and legal processes.
3. Automobile Liability
   Insurance Products that insure the legal liability of the insured/participant for claims suffered due to bodily injury or property damage risks occurring in connection with motor vehicles/automobiles used to conduct the insured/participant's business, during the coverage/membership period and within the coverage area, including all court costs and legal processes.
4. Workmen Compensation
   Insurance Products that insure the legal liability of companies to their employees for claims due to risks of death, illness, permanent/temporary disability, and treatment costs occurring while performing work ordered.
5. Public Liability
   Insurance Products that provide financial compensation suffered by others due to the negligence/error of the insured/participant and/or persons under the supervision of the insured/participant at the place where the insured/participant manages their business.
6. Product Liability
   Insurance Products that provide compensation due to goods/services produced/offered by the insured/participant failing/damaging, causing others to suffer financially or medically.
7. Directors and Officers Liability
   Insurance Products that provide protection to commissioners, directors, and company officials against risks arising from wrongful acts committed while acting in their capacity in those positions.
8. Medical Malpractice Liability
   Insurance Products that provide compensation for liability for claims arising from malpractice due to negligent, erroneous, or careless acts committed or alleged to have been committed by the insured/participant, along with costs in

defense or settlement of claims guaranteed in the insurance policy.
13. Personal Accident Insurance
Insurance Products that provide protection when the insured/participant experiences an accident that causes death, permanent/temporary disability, or medical costs due to accidents.
14. Health Insurance
a. Insurance Products that provide protection against 1 (one) type or more risks related to the physical health condition of a person or deterioration of the health condition of the insured person. b. There are 2 (two) principles in the medical care cost replacement mechanism, including principles:

1. Indemnity, medical care cost replacement
   is paid by the Insurance Company according to the ceiling established in the insurance policy; and
2. Managed Care, is an integration between
   financing and the provision of comprehensive healthcare as an effort from actions:
   a) promotive, namely activities that are health promotion or health education; b) preventive, namely prevention of a disease; c) curative, namely treatment for disease cure; d) rehabilitative, namely recovery; and/or e) palliative, namely special medical care to improve the quality of life of patients and the patient's family who suffer from chronic diseases and are difficult to cure, which includes first-level outpatient care, advanced outpatient care, and inpatient care in a structured and tiered manner.
   c. Health insurance coverage includes critical illness
   insurance. d. Critical illness insurance as referred to in letter c, is an Insurance Product that provides benefits in the form of payment of the sum insured/membership for critical illness, either as a lump sum or in installments to the insured/participant, when diagnosed with a specific critical illness according to the provisions contained in the insurance policy.

15. Credit Insurance/Sharia Financing
    Insurance Products that provide coverage/management of the risk of failure to fulfill the financial obligations of the debtor to the creditor according to the credit agreement/Sharia financing agreement.
16. Trade Credit Insurance
    Insurance Products that provide guarantee of replacement to sellers of goods or services (creditors) from the risk of financial loss in the form of trade receivables (accounts receivable) arising from the failure of buyers (trade debtors) to pay them off which occurs due to sales transactions on terms/installments.
17. Suretyship/Suretyship Sharia
    a. Insurance Products that provide guarantees on the ability of the principal to fulfill obligations according to the main agreement between the principal and the obligee. b. In suretyship/suretyship sharia, there are sub-classifications of insurance, namely:

1. surety bond, is suretyship/suretyship
   sharia that guarantees the principal
   (contractor/vendor/supplier) will fulfill obligations for a performance/interest to the obligee (bowheer/beneficiary) according to the contract/agreement between the principal and the obligee; and
2. customs bond and excise bond, are
   guarantees of customs and excise duties.

18. PAYDI
    a. Insurance Products that provide at least protection against the risk of death due to personal accident and provide benefits that refer to the investment results from a pool of funds specifically formed for Insurance Products, whether denominated in units or not. b. Based on the application of acquisition costs, PAYDI consists of:

1. Front End Loading
   In PAYDI, acquisition costs will reduce the value of premiums/contributions in the investment portion. For Unit-Linked General Insurance Products with the front end loading type, acquisition costs are charged in the early years of the insurance policy, usually from the first year to the fifth year. During this time, the amount of acquisition costs will decrease from year to year. With the presence of acquisition costs at the beginning, the investment value formed in the early years of the insurance policy is not yet maximal. The amount of acquisition costs charged in the early years of the insurance policy refers to the Regulation of the Members of the Board of Commissioners of the Financial Services Authority regarding insurance products linked to investment.
2. Back End Loading
   Back-end loading charges acquisition costs that will be charged at the end of the period. Without the presence of acquisition costs at the beginning, all premiums/contributions paid by the policyholder will be invested according to the investment instruments chosen by the policyholder of the insurance policy.

19. Travel Insurance
    Insurance Products that provide protection for a person's life against the risk of death, permanent/ temporary disability due to accidents, or medical costs due to illness and accidents in carrying out travel activities, both domestic and international, including protection against risks of flight delays, cancellations, loss of goods, and other travel inconveniences.

20. Moveable All Risk Insurance
    Insurance Products that provide protection over movable property due to risks that are sudden, unpredictable, and accidental in any form during the coverage/membership period as long as they are not excluded in the insurance policy. Example: electronic goods.

21. Miscellaneous Insurance
    Miscellaneous insurance is other Insurance Products other than Insurance Products as referred to in letter A numbers 1 to 20, including:
    a. Hole in One
    Insurance Products that provide protection to golf tournament organizers from financial liabilities for prizes that must be given if a player successfully scores a hole in one. b. Billboard Insurance Insurance Products that provide protection against losses or damages to billboards or advertising boards along with legal liability for damage to property and/or injuries suffered by third parties.
    c. Burglary Insurance
    Insurance Products that provide protection against the loss of the insured object/membership object as a result of theft that must be accompanied by damage or force against the building where the insured object/membership object is located or stored. d. Money Insurance Insurance Products that provide protection against cash or other exchange instruments equivalent to cash against various risks during storage (cash in safe) at the teller counter (cash in cashier box), or during the shipping process (cash in transit) as well as embezzlement and employee dishonesty (fidelity guarantee).
    III. Life Insurance and Sharia Life Insurance Business Lines
    A. General
    The business activities of Life Insurance Companies and Sharia Life Insurance Companies must be carried out in accordance with the type of life insurance business lines as follows:

22. single-year life insurance;

23. term life insurance;

24. endowment insurance;

25. combined endowment insurance;

26. whole life insurance;

27. combined whole life insurance;

28. general annuity insurance;

29. pension fund annuity insurance;

30. personal accident insurance;

31. health insurance;

32. credit life insurance/Sharia financing;

33. PAYDI; and

34. other insurance.
    B. Business Line Classification

35. Single-Year Life Insurance
    Life Insurance Products that provide benefits if the insured/participant dies during a period of 1 (one) year or less than 1 (one) year and/or the policy conditions can be renewed (renewable) at each insurance policy anniversary.

36. Term Life Insurance
    Life Insurance Products that provide benefits if the insured/participant dies during the insurance period of more than 1 (one) year or with a protection period for a specific period of time.

37. Endowment Insurance
    Life Insurance Products that provide benefits if:
    a. the insured/participant dies during the insurance period; or b. the insured/participant is still alive when the insurance contract ends, then the cash value benefits will be paid according to what is stated in the insurance policy.

38. Combined Endowment Insurance
    Life Insurance Products that provide life protection and cash value benefits that allow for benefit payments in several periods (installments).

39. Whole Life Insurance
    Life Insurance Products that provide life protection to participants for life or maximally until the age of 100 (one hundred) years.

40. Combined Whole Life Insurance
    Life Insurance Products that provide lifetime protection and cash value benefits or savings during the active insurance policy period.

41. General Annuity Insurance
    Life Insurance Products that provide benefit payments made periodically for a certain period. General annuities are classified as follows:
    a. Beginning of annuity benefit provision

1. Immediate annuity insurance
   Immediate annuity payments begin one period after the annuity is purchased. If the annuity period is 1 (one) year, annuity benefits are scheduled to be paid to the recipient every year and the first annuity benefit payment is made 1 (one) year after the annuity is purchased. Likewise, if the annuity has a period of 1 (one) month, annuity benefits will be paid to the recipient every month, and the annuity benefit is paid for the first time is 1 (one) month after the annuity is purchased; and
2. Deferred annuity insurance

Payment periods are scheduled to begin some time later. Deferred annuities are often purchased when a person is still actively working to anticipate income needs in retirement. b. Annuity benefit payments

1. Certain annuity insurance
   Certain annuities provide a benefit amount that has been determined. The payment period for this benefit is called the certain period. Payments will stop at the end of the certain period, even if the annuitant is still alive. If the annuitant dies before the certain period ends, the remaining annuity benefits will be paid to the heirs designated in the contract;
2. Life annuity insurance
   In life annuities, it is guaranteed that benefits will definitely be given at least until the annuitant dies. Therefore, in determining the amount of annuity benefits to be given with a specific premium/contribution payment, the company must consider the life expectancy of the potential recipient; and
3. Joint and survivor annuity insurance
   In this type of annuity, payments will be given to 2 (two) or more annuitants and annuity benefits continue until both or all annuitants die. Most joint and survivor annuities determine that annuity benefits will remain the same in size during the annuity benefit payment period although some determine that annuity benefits will decrease if one of the annuitants dies. For example, annuity benefits to the surviving person will be reduced by 1/3 (one third).

8. Pension Fund Annuity Insurance
   Life Insurance Products that provide periodic income payments to the policyholder (participant) after entering the retirement period with the aim of ensuring financial stability and providing fixed income during the retirement period or a certain period after retirement. Pension fund annuities are classified as follows:
   a. Fixed Annuity
   Annuity payments in a fixed amount during the payment period; b. Variable Annuity Annuity payments whose amount varies according to the investment results of pension funds; and
   c. Indexed Annuity
   Annuity payments are adjusted to the inflation index or a specific market index.
9. Personal Accident Insurance
   Insurance Products that provide protection and replacement or payment to the policyholder, insured/participant, or participant or other parties who are entitled in the event that the insured/participant experiences an accident that causes death, permanent disability, and medical care costs due to accidents.
10. Health Insurance
    a. Insurance Products that provide protection against 1 (one) type or more risks related to the physical health condition of a person or deterioration of the health condition of the insured person. b. There are 2 (two) principles in the medical care cost replacement mechanism, including principles:

1. Indemnity, medical care cost replacement
   is paid by the Life Insurance Company/Sharia
   Life Insurance Company according to the ceiling established in the insurance policy; and
2. Managed Care, is an integration between
   financing and the provision of comprehensive healthcare as an effort from actions:
   a) promotive, namely activities that are health promotion or health education; b) preventive, namely prevention of a disease; c) curative, namely treatment for disease cure; d) rehabilitative, namely recovery; and/or e) palliative, namely special medical care to improve the quality of life of patients and the patient's family who suffer from chronic diseases and are difficult to cure, which includes first-level outpatient care, advanced outpatient care, and inpatient care in a structured and tiered manner.
   c. Health insurance coverage includes critical illness
   insurance. d. Critical illness insurance as referred to in letter c, is an Insurance Product that provides benefits in the form of payment of the sum insured/membership for critical illness, either as a lump sum or in installments to the insured/participant, when diagnosed with a specific critical illness according to the provisions contained in the insurance policy.

11. Credit Life Insurance/Sharia Financing
    Life Insurance Products/Sharia Life Insurance Products that provide at least coverage/management of the risk of death and are linked to the fulfillment of financial obligations of the debtor to the creditor according to the credit agreement/Sharia financing agreement.
12. PAYDI
    a. Insurance Products that provide at least protection against the risk of natural death and/or

This copy is in accordance with the original
Head of Legal Development Directorate
Legal Department signed.
Aat Windradi the risk of death due to personal accident and provide benefits that refer to the investment results from a pool of funds specifically formed for Insurance Products, whether denominated in units or not. b. Based on the application of acquisition costs, PAYDI consists of:

1. Front End Loading
   In PAYDI, acquisition costs will reduce the value of premiums/contributions in the investment portion. For Unit-Linked Life Insurance Products with the front end loading type, acquisition costs are charged in the early years of the insurance policy, usually from the first year to the fifth year. During this time, the amount of acquisition costs will decrease from year to year. With the presence of acquisition costs at the beginning, the investment value formed in the early years of the insurance policy is not yet maximal. The amount of acquisition costs charged in the early years of the insurance policy refers to the Regulation of the Members of the Board of Commissioners of the Financial Services Authority regarding insurance products linked to investment.
2. Back End Loading
   Back-end loading charges acquisition costs that will be charged at the end of the period. Without the presence of acquisition costs at the beginning, all premiums/contributions paid by the policyholder will be invested according to the investment instruments chosen by the policyholder of the insurance policy.

13. Other Insurance
    Life Insurance Products/Sharia Life Insurance Products other than the business lines as referred to in letter A numbers 1 to 12. EXECUTIVE HEAD OF INSPECTOR FOR INSURANCE, GUARANTEE, AND PENSION FUNDS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, OGI PRASTOMIYONO signed.