Leonardo Siahaan, the Petitioner, at the panel petition revision hearing of the material judicial review of Article 251 of the Commercial Code, Monday (6/12/2023). Photo by Humas MK/Ifa.

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JAKARTA (MKRI) — The Constitutional Court (MK) held another material judicial review hearing of Article 251 of the Commercial Code (KUHD) on Monday, June 12, 2023. The petition No. 52/PUU-XXI/2023 was filed by Leonardo Siahaan, a private employee.

On site at the hearing, the Petitioner revealed a case on insurance policy based on the Supreme Court Decision No. 560 K/Pdt.Sus/2012, filed by Hermi Sinurat against PT Avrist Assurance. As the heir of one Mrs. Ilermi Sinurat, through his counsel Sinurat filed an objection on the contents of the policy and requested that the defendant paid a 50-million insurance claim. He had corresponded with the defendant several times.

“On page 13, Mardi Simarmata (deceased) was accused of providing inaccurate notifications that might have misrepresented the ‘H’ SPPA part by claiming that he had never had any illness nor had he undergone any medical examination,” the Petitioner said before Constitutional Justices Daniel Yusmic P. Foekh (chair), Wahiduddin Adams, and Suhartoyo.

Also read: Petitioners Asserts Insurance Agreement in Commercial Code Unfair 

The Petitioner challenges Article 251 of the Commercial Code (KUHD), which reads, “Every incorrect or false notice, or every concealment of facts known by the insured party, even though made in good faith, the nature of which is such that the agreement concerned would not have been made, or would not have been made under the same conditions if the insuring party learnt the factual situation of all these matters, shall render the insurance concerned void.”

At the preliminary hearing on Monday, May 29, he conveyed the constitutional impairment he had experienced. While reading up on legislation on insurance as he wishes to apply for a premium, he read Article 251 of the Commercial Code.

“After reading and exploring Article 251 of the Commercial Code, [I] have concerns about [its] enactment,” he explained.

He alleges that the article is prone to abuse by insurers who do not have good faith because many insured parties lack knowledge of insurance, a fact often exploited by insurers. Not infrequently, insurers make the contents of the policy lengthy that the insured would not have enough time to read them.

Not uncommonly, he claims, insurers use difficult language in the policy so that it would be more favorable to them. Groups such as the elderly and people who have below-average intelligence, he argues, are prone such manipulation by insurers who have bad faith.

The Petitioner believes Article 251 KUHD is very unfair because it only burdens the insured. Both the insured and the insurer, he argues, should have an equal position in the insurance agreement.

Therefore, in his petitum, the Petitioner requests that the Court grant the petition in its entirety and declare Article 251 of the Commercial Code unconstitutional and not legally binding.  

Author       : Utami Argawati
Editor        : Nur R.
PR            : Andhini S. F.
Translator  : Yuniar Widiastuti (NL)

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

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