Jakarta. Insurance coverage will soon become compulsory for major events in Indonesia that draw large crowds, such as concerts and sports matches. The government is expected to issue regulations on this matter in 2024.

The purchase of insurance while attending concerts or sports events is slated to become part of the Mandatory Insurance Program under Law Number 4 of 2024 concerning the Development and Strengthening of the Financial Sector (PPSK).

Article 39A specifies that the government has the authority to establish the Mandatory Insurance Program and may require the public to participate and pay premiums in the program. Further provisions regarding the implementation of the program will be regulated by a government regulation after obtaining approval from the House of Representatives.

The Financial Services Authority (OJK) Executive Head of Insurance, Guarantee, and Pension Fund Supervision, Ogi Prastomiyono, explained that the program could apply to individuals attending concerts or sports matches.

"The Mandatory Insurance Program can also be applied to big events if there are activities that gather a large number of people such as concerts, sports matches, etc," Ogi said on Friday.

He said that the discussion and drafting process for Government Regulation related to the Mandatory Insurance Program is still ongoing.

"OJK will continue to be active in various processes. OJK hopes that the Government Regulation will be issued in 2024 to enhance the well-being of the wider community," concluded Ogi.

This program is exempted from the Insurance Policy Guarantee Program, where in the event of default in the Mandatory Insurance Program, the Deposit Insurance Agency (LPS) does not participate in covering the risk. The Law on PPSK states several types of Mandatory Insurance Programs such as third-party liability insurance related to traffic accidents, fire insurance, and home insurance against disaster risks.

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