WORKING PAPER ENGLISH LANGUANGE

“Modern Market”

Arranged in order to fulfill the tasks of general English courses that are lectured by lecturers
: Ibu Puspa Sari,S.Pd.,M.Pd

Compiled By :

Astrid Nindi (191120004)

JURUSAN ILMU MANAJEMEN A1

FAKULTAS EKONOMI DAN BISNIS
UNIVERSITAS MUHAMMADIYAH PALOPO
2020
 PREFACE
Assalamualaikum warahmatullahi wabarakatuh.

Peace be upon you, and Allah mercy and blessings for us.

All praise and thankfulness I say to God who still provides knowledge and wisdom to
complete the task of writing the paper about "Life Insurance".

Of course, by studying material about Life Insurance in the life of the Indonesian people we
can find out how and the process of establishing Life Insurance is.

Therefore, the authors would like to thank the lecturer Mrs. Puspa Sari, .S.Pd., M.Pd, who has
given her trust to the author to complete this paper in a timely manner.

The author also hopes that this paper will not only be useful for writers, but also for all those
who read this paper in adding insight to one of the social financial services provided by the
Government of Indonesia.

Additionally, the authors are also aware that this paper is very far from perfection, and this
paper has many shortcomings both in terms of the rules of writing and the contents of the
material. Therefore, the authors expect criticism and suggestions from readers so that this
paper can be even better.

hopefully this paper can be useful.

Makassar, 17 June 2020

Writer

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 LIST

Preface……………………………………………………………………………………….ii

List…………………………………………………………………………………….…….iii

Chapter I – Introduction

a. Background…………………………………………………………………….……1
b. Formulation of the problem…………………………………………………………1
c. Writing purpose……………………………………………………………………..1

Chapter II – Discussion

a. Understanding of Insurance and Life Insurance is……………………………….2-3

b. Insurance Policy……………...…………………………………………………..3-6
c. Various Life Insurance...…………………………………………………………6-7
d. Insurance’s Benefits…………………………………………………...…………7-8

Chapter III – Closing

a. Conclusion………………………………………………………………………
b. Suggestion………………………………………………………………………

Directory

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 CHAPTER I

INTRODUCTION

A. Background of the paper

In this Era and day a lot of risks in the future can occur to anyone in everyday. Life ranging
from the lower classes to the upper classes, for example, what happens in accidents, death
or illness can all befall someone who makes a huge loss for those who experience it.
Therefore, every risk faced by someone must be addressed before experiencing a greater
loss again. One way to overcome it is to use insurance services. At present there are many
insurance companies in Indonesia that anything can be insured.

A person's soul can be insured for the needs of the person concerned, both for the rest of
his life and for the time specified in the agreement. The person concerned may provide
insurance even without the knowledge or consent of the person insured for his life.
So, everyone can insure their life. Life insurance can even be held for the benefit of third
parties. Life insurance can be held for life or for a certain period specified in the agreement.

B. Problem Formulation

a. What is the contens of Life Insurance Police?

b. What are the various types of Lice Insurance?
c. What are the benefits of Life Insurance?
d. What is Insurance’s Benefits?

C. Writing Purpose

This paper aims to discuss and give readers an understanding of one of the Social
Institution Services provided by the Government of Indonesia, which provides
financial services and safeguards losses and provides protection for the assets of
someone who uses this service.

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 CHAPTER II
DISCUSSIONS
A. Understanding of Insurance
 Insurance
In Law Number 2 of 1992, a more complete definition of insurance was formulated when
compared to the formula contained in Article 246 of the Indonesian Criminal Code.
According to the provisions of Article 1 number (1) of Law Number 2 of 1992:
"Insurance or coverage is an agreement between 2 (two) or more parties, whereby the insurer
binds itself to the insured by receiving insurance premiums, to provide compensation to the
insured due to damage loss or loss of expected profits or legal liability to third parties that
may be will be suffered by the insured, which arises and an uncertain event or to provide a
payment based on the death or life of the insured person.
So from the above understanding it can be concluded that insurance is divided into two
namely:
1. Loss insurance
As stated in article 1 number 1 of the law above "" to provide compensation to the insured
due to loss, damage, or loss of expected profits, or legal liability to the third party that may
not be suffered by the insured ".
2. Life insurance and social insurance
"To provide a payment based on the life or death of an insured person."

 Life Insurance
"Life insurance is an agreement, between 2 (two) or more parties with which the Insurer
binds himself to the insured by receiving a premium to provide a payment based on the death
or life of an insured person."

In the KUHD life insurance is regulated in Book 1 Chapter X articles 302 to article 308 of the
KUHD. There are 7 articles regulating life insurance but none of them explain the meaning of
life insurance. According to the provisions of Article 302 of the KUHD: "A person's life can
be insured for the needs of the person concerned, both for the duration of his life or for the
time specified in the agreement".

Furthermore, Article 303 of the KUHD stipulates:

"The person concerned may provide insurance even without the knowledge or consent of the
person insured for his soul".

In connection with the description of the legislation above, Purwosutjipto clarifies the notion
of life insurance by stating the definition:

"Life insurance is a mutual agreement between the insurance cover (taker) and the guarantor,
whereby the insurance cover (taker) binds itself as long as the insurance cover pays the

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premium to the insurer, while the insurer as a direct result and death of the person whose life
is insured or the expiration of a period the agreed time, commit themselves to pay a certain
amount of money to the person appointed by the insurance cover (taker) as the audience

B. Life Insurance Policy

1. The form and contents of the Policy

In accordance with the provisions of Article 255 of the KUHD, life insurance must be held in
writing in the form of a deed called a policy. According to the provisions of article 304
KUHD, life insurance policies contain:

a. Insurance day is held

The policy must include the day and date of insurance. It is important to know when the
insurance starts and also can be known from the day and date that the risk is borne by the
guarantor.

b. Insured name

The policy must include the name of the insured as the party who is required to pay the
premium and is entitled to receive the policy. In the event of an event or if the validity period
of the insurance expires, the insured is entitled to receive a sum of compensation or refund
from the guarantor. Besides the insured, in the practice of life insurance also known
connoisseurs (beneficiary). i.e. people who are entitled to receive a certain amount of money
and a guarantor because they are appointed by the insured or because of their heirs, and are
listed in the policy. Connoisseurs are domiciled as a third party of interest.

c. The name of the person whose soul is insured

The object of life insurance is the human soul and body as a whole. A soul without a body
does not exist, in contrast a body without a soul means nothing to life insurance. A person's
life is an object of intangible insurance, which can only be known through his bodily form.
The person who owns the body has a name whose soul is insured, either as an insured party
or as an interested third party. The name must be included in the policy. In this case, the
insured and the person whose life is insured is different.

d. When the event begins and ends;

At the start and end of the event the insurance period is valid. meaning that within that period
the risk is borne by the guarantor, for example starting on January 1, 1990 until January 1, 00,
if within that period an event occurs, the guarantor is obliged to pay compensation to the
insured or the person appointed as a beneficiary.

e. Insurance amount

The amount of insurance is a certain amount of money that was promised at the time the
insurance was held as the amount of compensation that must be paid by the guarantor to the

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connoisseurs in the event of an event, or return to the insured himself in the event the
insurance period ends without an event. According to the provisions of Article 305 of the
Indonesian Criminal Code, the estimated amount and conditions of insurance are entirely
determined by the free agreement between the insured and the guarantor. With this free
agreement, the principle of interests and the principle of natural balance. Life insurance is set
aside.

f. Insurance premium

Insurance premium is a sum of money that must be paid by the insured to the guarantor for a
certain period of time, usually every month for the duration of the insurance. The amount of
insurance premiums depends on the amount of insurance agreed by the insured at the time the
insurance is held.

However, regarding the design of the amount and determination of insurance conditions at all
depends on the agreement between the two parties (Article 305 KUHD).

2. Insurer, Insured and Connoisseurs

In insurance law there are at least 2 (two) parties, namely the guarantor and the insured. An
insurer is a party that bears the burden of risk in return for the premium he receives from the
insured. In the event of an event that becomes the burden of the guarantor, the guarantor is
obliged to compensate. In life insurance, if an insured person dies, the guarantor is obliged to
pay compensation, or if the insurance period ends without an insurance, the guarantor is
obliged to pay a refund to the insured. The Insurer is a Life Insurance Company that provides
services in managing risks associated with the life or death of an insured person. Life
Insurance Companies are private or state-owned legal entities.

Insurance can also be held for the benefit of a third party and this must be stated in the policy.
According to the third party interest theory, in life insurance, interested third parties are
called connoisseurs. This connoisseur can be someone who is appointed by the person or the
heir of the insured. The emergence of this connoisseur in the event of death of the insured. In
this case, the insured who died may not be able to enjoy compensation, but the appointed
connoisseurs or heirs of the insured are entitled to enjoy compensation. However, what if the
insurance expires without the death of the insured? In this case the insured himself is a
connoisseur because he himself is still alive and has the right to enjoy a refund of the amount
of money paid by the guarantor.

If the insured is not a connoisseur, then this can be equated with life insurance for the benefit
of a third party. Connoisseurs as third parties do not have the obligation to pay premiums to
the guarantor. Insurance is held for its benefit, but not for its responsibilities. If the insured
insures his own soul, then the boss himself is a connoisseur who is obliged to pay a premium
to the guarantor. In this case the insured is a party in the insurance as well as connoisseurs
who are obliged to pay a premium to the guarantor. Life insurance for the benefit of third
parties (connoisseurs) must be included in the policy.

3. The termination of life insurance

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a) Because there was an event

In life insurance, the only event that becomes the burden of the guarantor is the death of the
insured. Against this event is held life insurance between the insured and the guarantor. If
within the agreed period the death of the insured occurs, the guarantor is obliged to pay
compensation to the connoisseurs appointed by the insured or his heirs. Since the guarantor
paid the compensation payment, life insurance has ended since.

What is the reason why life insurance ends since the payment of compensation money, not
since the death of the insured (there is an event)? According to the law of the agreement, an
agreement made by the parties ends when each party's achievements have been fulfilled.
Because life insurance is an agreement, life insurance expires since the guarantor pays the
compensation money as a result and the death of the insured. In other words, life insurance
expires since the event is followed by the settlement of the claim.

b) Because the Expiration Period

In life insurance, it is not always the event that becomes the burden of the guarantor, even
until the end of the insurance period. If the validity period of the life insurance runs out
without any event, then the risk burden of the guarantor ends. However, the agreement
stipulates that the guarantor will return a sum of money to the insured if until the insurance
period runs out there is no event. In other words, life insurance expires since the validity
period of the insurance runs out followed by the return of some money to the insured.

c) Because of Fall Insurance

According to the provisions of Article 306 of the Indonesian Criminal Code:

"If the person who is insured with life at the time of the insurance is found to have died, then
the insurance will die, even if the insured does not know about the death, unless agreed
otherwise"

The words of the end of this article "unless agreed otherwise" provide an opportunity for
parties to commit to deviate from the provisions of this article, for example insurance that is
held to remain ignited is legal as long as the insured is not really aware of the death. If life
insurance falls, what about the premium already paid because the guarantor does not run the
risk? This was left to the parties to memperjanjikannya. Article 306 of this KUHD regulates
life insurance for the benefit of third parties.

In Article 307 the KUHD is determined:

"If a person insuring their lives suicides, or is sentenced to death, then life insurance is
canceled"

Is this deviation still possible? According to Purwosutjipto, deviations from this provision are
still possible, because most life insurance is covered by a clause that allows the guarantor to
perform his achievements in the event of a suicide and the insured body provided that the

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event occurs after the past 2 (two) years since the insurance was held. This deviation will
make life insurance even more outgoing.

d) Because Insurance is Canceled

Life insurance can expire due to cancellation before the expiration period. The cancellation
can occur because the insured does not continue to pay premiums according to the agreement
or because the insured's own request. Cancellation of life insurance can occur before the
premium starts paid or after the premium is paid according to the time period. If the
cancellation is before the premium is paid, there is no problem. However, if the cancellation
is made after the premium has been paid once or several times payment (on a monthly basis),
how is the solution? Because life insurance is based on an agreement, the settlement depends
also on the agreement of the parties stated in the policy.

C. Kinds of Life Insurance

1. Personal Insurance (Health)

This insurance will make the insured feel more secure and calm psychologically and
financially. We certainly do not need to worry about the costs we have to pay to the hospital
if we have become a health insurance policy holder. Each company will usually provide
services and benefits of individual health insurance that is different, but in general there are
several costs below that will be met by the insurance company:

a) Costs for daily hospitalization at designated hospitals;

b) Costs for hospitalization due to chronic and serious illness;
c) Costs for care in a special room;
d) Costs for surgery and surgery;
e) Costs for consultation and doctor's check up;
f) Costs for payment of an ambulance;
g) Costs to redeem medicines from doctors in all pharmacies.
The insured will certainly benefit greatly from the cost reimbursement for all of
the above. But of course every insurance company will apply different
requirements. It is better for the insured to compare several insurance companies
first.

Terms of Insurance Register

a) Aged 18 years to 55 years;

b) must pay a premium starting from you applying for insurance until you are 70
years old;
c) choose a premium payment method that suits your ability, for example monthly
payment methods, quarterly payment methods, semester payment methods or
annual payment methods.

2. Personal Accident Insurance

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Personal Accident Insurance is a guardian and financial support for dealing with unforeseen
accidents.

Personal Accident Insurance (Personal Accident) guarantees the risk of Death, Permanent
Disability, Cost of Care and or Treatment that is directly caused by an accident, which is an
event or event that contains elements of violence both physical and chemical, which comes
suddenly, unwanted or planned, from the outside, visible, directly to the insured which
immediately results in bodily injuries whose nature and place can be determined by Medical
Science.

BROAD GUARANTEE

a) Guarantee A

Risk of death due to accident. Cover provided is compensation if the insured person listed in
the policy dies or disappears as a direct result of the accident which is guaranteed by the
policy.

b) Guarantee B

Risk of permanent disability due to accident. Cover provided is compensation if the insured
listed in the policy experiences permanent or partial disability as a direct result of the
accident guaranteed by the policy.

c) Guarantee C

Both BPJS basically carry the state's mission to fulfill everyone's constitutional rights to
social security by organizing a guarantee program aimed at providing certainty of protection
and social welfare for all Indonesian people.

The implementation of adequate and sustainable social security is one of the pillars of the
welfare state, in addition to the other pillars, namely education for all, wide open employment
and stable and equitable economic growth.

D. Insurance’s Benefits

1. First, is insurance that provides coverage for a certain period of time for example 5, 10 or
even 20 years in accordance with the agreement between the policyholder and the insurance
company. Such insurance is called term life insurance. In general, this type of insurance
premium is paid in advance and is carried out annually during this period. However, if the
policy lapse (inactive), the benefits will stop and the premium value will be forfeited.
Examples of term life insurance that we often encounter is credit life insurance, which
provides life insurance protection for a credit period. If the risk of death occurs to the insured
person or in this case the creditor, the insurer will pay off the remaining loan to the debtor, so
as not to burden other parties.

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2. Second is insurance that can provide lifetime protection benefits. In general, the benefits of
protection reach the Insured 99-100 years old. This insurance is called whole life insurance.
The advantage of this type of insurance that distinguishes from term life insurance is that in
addition to providing protection, it also provides cash value that can function as savings and
also that provides life-long life protection benefits at a fixed premium rate so that it does not
increase in line with the age of the Insured. In the whole life insurance product, if the policy
is no longer active until the Insured dies, the policyholder still gets the promised cash value
reduced by the costs of closing the policy and paying premium in arrears.
3. is a dual-purpose insurance or what we often hear with endowment insurance that provides
multiple benefits, both protection and savings elements. This type of insurance product we
often encounter in education insurance. The advantages of dual purpose insurance are certain
and guaranteed insurance benefits whether the Insured is still alive until the due date or dies
before the due date. What distinguishes dual purpose insurance from whole life insurance is
that policies on dual purpose insurance can form cash values faster than whole life insurance.
This is caused by, the dual value insurance cash value will usually be the same as the sum
insured on the maturity of the policy so there is no need to wait until you reach 99-100 years
of age. For that reason, it is important for us to know the needs before having an insurance
product so that it is not wrong to buy the desired insurance product.

CHAPTER III

CLOSING

A. CONCLUSION
Life insurance is an agreement, between 2 (two) or more parties by which the Insurer binds
himself to the insured by receiving a premium to provide a payment based on the death or life
of an insured person.

According to the provisions of article 304 KUHD, life insurance policies contain:
a. Insurance day held;
b. Insured name;
c. The name of the person whose soul is insured;
d. When the event begins and ends;
e. Insurance amount;
f. Insurance premium.

This event is only 1 (one), which is the uncertainty when someone dies as one of the elements
stated in the definition of life insurance. Life insurance expiration:

1. Because of the occurrence of Evenemen

2. Because the time period is over
3. Because insurance is canceled
4. Because insurance is canceled

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B. SUGGESTION
Accident at work is a risk that is part of the job, for the company should prevent in
this case provide protection in the form of compensation that is not in the form of
compensation, either directly or indirectly, which is applied by the company to
workers and can be given a life insurance as work safety guarantee.

DIRECTORY

Dimyanti Khuzdaifah, 2004. Metode Penelitian Hukum, Surakarta: Fakultas Hukum

UMS.
Endang, M. Suparman Sastrawidjaja, 1993, Hukum Asuransi (Perlindungan
Tertanggung Asuransi Deposito Usaha Perasuransian), Bandung: Alumni.
Hartono Hadisaputro. 1984, Pokok-Pokok Hukum Perikatan dan Jaminan, Yogyakarta:
Liberty.
Ikatan Akuntan Indonesia, 2004. Standar Akuntansi Keuangan, Jakarta: Penerbit Salemba
Empat.
http://makalahdanskripsi.blogspot.com
http://penasehatkeuangan.wordpress.com/
http://makalahasuransijiwa-maya.blogspot.com