PROBLEMATICS OF INSURANCE COMPANIES THAT FAILED TO PAY THE CUSTOMER

Insurance is a company that introduces the concept of coverage for the risk of the policyholder or the insured, with the condition of paying a premium to the insurance company. Life insurance is quite beneficial for insurance customers, but based on the cases that emerged during the COVID-19 Pandemic, one of the life insurance companies, Kresna Life, experienced a default on insurance claims which should be fulfilled by customers who do insurance claim. The problems raised by the authors in this study are: 1) Analyzing the causes of insurance companies that failed to pay the customer; 2) Analyzing the liability of the insurance company that failed to pay the customers. The research method used is normative juridical research, namely research conducted by examining library materials which include primary and secondary legal materials. The results showed that the causes of insurance companies experiencing default are poor management, weak insurance governance, a lack of prudential principles in investment placement, and poorly implemented risk management. The responsibility of the insurance company if it fails to pay to customers can offer a restructuring program to policyholders through registration, socialization, and agreement schemes. With restructuring efforts, it is hoped that it can minimize the risks and losses received by policyholders, so that the benefits of the policy will continue.