ABOUT DAYIN MITRA

GOOD CORPORATE GOVERNANCE

The function of the Nomination and Remuneration

The function of the Nomination and Remuneration

PT Asuransi Dayin Mitra Tbk as a company that is open and listed on the stock exchange, always apply the principles of good corporate governance for the Issuer or Public Company.

Insurance Companies must implement a remuneration policy for members of the Board of Directors, members of the Board of Commissioners and employees that encourage behavior based on the precautionary principle (Prudent behavior) that is consistent with the long term interests of the company and the fair treatment of policyholders, insured, participants, and / or parties reserve the right benefit.

In accordance with the Regulation of the Financial Services Authority No. 34 / POJK.04 / 2014 of the Nomination and Remuneration Committee of Public Company, and in order to improve the application of the principles of good corporate governance for an Issuer or a Public Company with regard to the transparency of the process of the Nomination and Remuneration Committee and to improve the quality, competence and responsibility the Board of Directors and Board of Commissioners, the Company has decided through Decree Board of Commissioner No. 003 / SK-Dekom-ADM / X / 2015 dated October 9, 2015, concerning deploy functions of the Nomination and Remuneration.

In the decree stipulated that the implementation of the functions of the Nomination and Remuneration Committee of the Company held by the Board of Commissioners and / or to other parties appointed, with the duties and responsibilities as follows:

Nomination functions:

a. Provide recommendations regarding:
– The composition of the tenure of members of the Board of Directors and / or members of the Board of Commissioners
– Policy and the criteria required in the process Nomination
– Performance evaluation policy for members of the Board of Directors and / or members of the Board of Commissioners.

b. Conducting performance assessment of Directors and / or members of the Board of Commissioners based on benchmarks that had been developed as an evaluation.

c. Provide recommendations regarding program development ability of members of the Board of Directors and / or members of the Board of Commissioners.

d. Provide qualified candidates proposed as members of the Board of Directors and / or members of the Board of Commissioners to be submitted to the GMS.

Function Remuneration:

a. Provide recommendations regarding:
– Remuneration Structure;
– Policy on Remuneration; and
– The amount on remuneration;

b. Conducting performance appraisals with conformity remuneration received by each member of the Board of Directors and / or members of the Board of Commissioners.

Investment Commitee

INVESTMENT COMMITTEE

In accordance with the Financial Services Authority Regulation No. 2 / POJK.05 / 2014 About Corporate Governance Good For Insurance Companies, article 11, Board of Directors of the Insurance Company shall form the Investment Committee.

Investment Committee responsible for assisting the Board of Directors in formulating investment policies and oversee the implementation of the investment policy has been set.

At the same rules, Article 57, concerning Governance Investment, Insurance Companies are required to formulate policy and investment strategy in writing, evaluated regularly, at least 1 (one) time in 1 (one) year, and reported to the Chief Executive at the latest 1 (one) months after adoption by the Board of Directors.

PT Asuransi Dayin Mitra Tbk as a general insurance company and a public company has to obey and formed the Investment Committee in accordance with the applicable provisions Directors’ Decree No. 090-1 / DIR / PD / X / 2014 dated October 6, 2014.

The company also makes Policies and Strategies Investment Directors’ Decree No. 091-1 / DIR / PD / X / 2014 dated October 29, 2014 and has also been submitted to the Financial Services Authority via letter nomot B.132 / Dir-Keu / XI / 2014 dated 28 November 2014.

Structure, membership and expertise

Structure of Investment Committee:
Leader:    Purnama Hadiwidjaja
Member: Hanny Dumalang

Based on the Regulation of Financial Services Authority No. 2 / POJK.05 / 2014 About Corporate Governance Good For Insurance Companies, article 61, the Company in addition to having the Investment Committee, the Insurance Company is also required to have a working unit or officers of the investment management functions that meet requirements following:

a. Perform the functions of analysis and implement, monitor, and report on investment management.
b. Having and implementing internal control systems and procedures to ensure that investments are made in accordance with the investment policy and strategy and does not violate laws and regulations.
c. Have integrity and expertise and experience in the investment field.

The company also has established a working unit which undertakes the function of investment management that has been previously established through Decree No. 090-2 BOD / DIR / PD / X / 2014 dated October 6, 2014.

Policy and Investment Strategy

Company policies and strategies for investment in writing, which was approved by the Decree of Directors No. 091-1 / DIR / PD / X / 2014 dated October 29, 2014, Adherence to the investment policy and strategy are evaluated periodically, at least 1 (one) time in 1 (one) year.

Policies and investment strategies include:
a. Profile of assets and liabilities of the Company.
b. Correspondence between the duration of the wealth and the duration of the liability of the Company.
c. Investment objectives.
d. Target level of expected investment results, including investment benchmark results (yield’s benchmark) are used.
e. Basic assessment and qualitative limits for each type of investment asset.
f. The maximum limit of investment allocation for each type of investment asset.
g. Maximum limit the proportion of a company’s assets could be placed on one side.
h. The maximum limit of the amount of assets that were not placed (idle assets) in the form of investment.
i. Investment objects that are prohibited for placement investments.
j. The minimum liquidity level of the company’s investment portfolio to support the availability of funds for payment of insurance benefits.
k. Monitoring and reporting system implementation of investment management.
l. Provisions concerning the use of investment managers, investment advisors, experts, and other service providers that are used in the management of investments.
m. Terms of use of derivatives and other structured financial products for hedging purposes.
n. Restrictions authorized investment transactions for each level of management and accountability.
o. Measures to be applied to the Board on the investment policy violations.

Investment policy and strategy set by the Board of Directors, disseminated to employees who are involved in investment management and has been submitted to the Financial Services Authority.

Directors annual investment management plan that includes:
a. Plans composition of this type of investment.
b. Estimated rates of return for each type of investment.
c. Considerations underlying composition of the type of investment plan.
Annual investment management plan must reflect the policy and investment strategies.

In managing the investments, the Board of Directors shall perform:
a. The analysis of the investment risks including but not limited to market risk, credit risk, liquidity risk, and operational risk and mitigation plans in the event of an increased risk of the investment.
b. Studies were adequate and documented in placing, maintaining and releasing investment.

The Board of Directors took the decision to optimize the investment in a professional and sustainable value for stakeholders, especially the policyholder, the insured, the participants, and / or the party entitled to benefit.

The Company has a working unit or officers of the investment management functions that meet the following requirements:
a. Perform the functions of analysis and implement, monitor, and report on investment management.
b. Having and implementing internal control systems and procedures to ensure that investments are made in accordance with the investment policy and strategy and does not violate laws and regulations.
c. Have integrity and expertise and experience in the investment field.

The company puts investment in capital market investment instruments are required to administer an effect on those who have no affiliation with the company.

The Company has investments in shares traded on the stock exchange and have access to information that allows direct monitoring mutation investment portfolio.

The Company has the area of investment experts who have passed the examination as deputy investment manager.

Product Development Committee

PRODUCT DEVELOPMENT COMMITTEE

Based on the regulation of the Financial Services Authority No. 2/POJK.05/2014 the Company must establish the Product Development Committee.

The Board of Directors through Decision Letter No. SK : 086-2/DIR/PD/IX/2014 has established the Product Development Committee and its working guidance to support the principles of Good Corporate Governance, i.e. Transparency, Accountability, Responsibility, Independency, and Fairness.

The guidance contains its background, vision and mission, purposes and goals, structures, tenureship, requirements of membership, duties responsibilities and authorities, code of conduct, and others.

Structure, membership and expertise

Structure of Product Development Committee :
Leader : Galung PS (Technical)
Member :
-Ariaji Wiyoso (Broker Marketer)
-Satriyo Pamungkas (Actuary)

The Duties and Responsibilities of Insurance Product Development Committee are :

a. To arrange strategic plan of insurance product marketing and development as part of strategic plan of Company business activity.
b. To carry out survey and analyze the market’s need on product that will be launched.
c. To evaluate the concordance of new insurance product that will be launched with strategic plan of insurance product marketing and development.
d. To evaluate performance of insurance product and propose a change or terminate the marketing programme.
e. To make report upon result of research which is carried out and other reports in connection with the product development that is mandatory reported to the Financial Services Authority.

Duties description

Insurance product as development of exising insurance product

1. Product Development Committee will check whether this product development already available in the market.

1.a. If it does, Product Development Committee will seek information in the market about additional premium for the additional features in order to get a competitive product in the market.
1.b. If it doesn’t, Product Development Committee will seek information to the related parties who have data/information about the new feature

2. Product Development Committee will analyse whether the additional feature can be managed internally by the Company or require service of other party.

2.a. If can be managed internally, no additional expense will incur that will increase the premium and make the product no longer competitive in the market.
2.b. If requires service of other party, Product Development Committee will seek third party who provides the related service. The cost of the third party should be pressed as low as possible to make the premium remain competitive.

3. Product Development Committee will check whether this extension is not deviated from current Company’s policy and is not excluded under Company’s Reinsurance Treaty.

3.a. If deviates from Policy and excluded under Treaty, the process stops.
3.b. If not deviate from Policy and not excluded under Treaty, the process will continue.
3.c. If requires facultative reinsurance support, Product Development Committee will cooperate with Reinsurance Department to get such facultative reinsurance support.

4. Product Development Committee will prepare all documents to be submitted to OJK in order to get approval upon additional features of such insurance, i.e. :

4.a. Risk & Loss Profile to get formula and its assumption
4.b.Endorsement wordings upon additional features of insurance
4.c. Fill in the Form Assesment
4.d.Makes Underwriting Result Projection in the next 3 years
4.e.Makes Marketing Brochure upon additional features
4.f. Makes Proposal and Claim Forms
4.g. Makes Marketing Description
4.h.Prepares Letter of Reinsurance Support

5. After having license from OJK, additional features of such insurance can be sold to the market by the Company

6. Product Development Committee will continuously monitor the development of selling the product whether in line with early projection.

New insurance product and has never been marketed by the Company

1. Product Development Committee will check whether this new product plan already available in the market.

1.a. If it does, Product Development Committee will seek information in the market about the product, who sell, how the underwriting result and its loss records, market share and its prospect in the future.
1.b. If it doesn’t, Product Development Committee will seek information to the related parties in the market especially to get statistic data to formulate the premium, additional features which is attractive to the market.

2. Product Development Committee will analyse whether this new product can be managed internally by the Company or require service of other party.

2.a. If can be managed internally, no additional expense will incur that will increase the premium and make the product no longer competitive in the market.
2.b. If requires service of other party, Product Development Committee will seek third party who provides the related service. The cost of the third party should be pressed as low as possible to make the premium remain competitive.

3. Product Development Committee will check whether this new product is not deviated from current Company’s policy and is not excluded under Company’s Reinsurance Treaty.

3.a. If deviates from Policy and excluded under Treaty, the process stops.
3.b. If not deviate from Policy and not excluded under Treaty, the process will continue.
3.c. If requires facultative reinsurance support, Product Development Committee will cooperate with Reinsurance Department to get such facultative reinsurance support.

4. Product Development Committee will prepare all documents to be submitted to OJK in order to get approval upon this new insurance product, i.e. :

4.a. Risk & Loss Profile to get formula and its assumption
4.b.Policy and Endorsement wordings
4.c. Fill in the Form Assesment
4.d.Makes Underwriting Result Projection in the next 3 years
4.e. Makes Marketing Brochure
4.f. Makes Proposal and Claim Forms
4.g. Makes Marketing Description
4.h.Prepares Letter of Reinsurance Support

5. After having license from OJK, this new insurance product can be sold to the market by the Company

6. Product Development Committee will continuously monitor the development of selling the product whether in line with early projection

Meeting frequencies and attendance of the Product Development Committee

Meeting divided into two which are internal and external.

Internal meeting is meeting between Leader and Member of Product Development Committee. The meeting was held 4 (four) times and attended by all committee’s member.

External meeting is meeting between part of committee’s member with external party, such as Freight Forwarding Association, Portal Service Provider, Service of Road Assistance Provider, Insurance Agent and Broker. The meeting was held 10 (ten) times.

Risk Management Unit

RISK MANAGEMENT UNIT

Insurance Companies must apply risk management to identify, assess, monitor and manage business risks effectively and also be adapted to the purpose, business policy, size and complexity of the business and the ability of companies.

The Company is facing a variety of risks in each Division, and Department that arises in each transaction, work flows, policies, procedures, and business decisions. Those risks are considered as the responsibility of all employees and should be identified, analized, and monitored by an effective mitigation.

Risk Management Unit is responsible for policies making, risk management framework, and monitoring of business process. Risk Management Unit determines the limit of risks by evaluating the probability and impact that can be tolerated in accordance with the Company’s business strategies.

Structure, membership and expertise

The Company also has a Risk Management Unit that carries out an identification, analysis, evaluation, treatment, monitoring, review, and communication process.

The company has decided to appoint an employee responsible for the Risk Management Unit Directors’ Decree No. 050-1 / DIR / PD / II / 2015 appointed :
Leader : Dawidju Widjaja
Members: Yovita Suhartono

The implementation of a risk management system

The Company made Risk Management guidelines as a guide in the implementation of risk management and GCG.

The Company conducts risk management which process is as follows:

Risk Identification:
Systematic process to identify each risk which potentially impede the Company’s goals and strategies.

Risk analysis:
Assessment process to ensure that the likelihood and consequencies of risks has been assessed.

Risk evaluation:
The process to evaluate the risks level in order to identify which risks will require further treatment.

Risk mitigation:
The process to determine mitigation procedures, which could be implemented effectively and efficiently.

Monitoring and reviewing risks:
The process to review risk, effectiveness of risk mitigation, risk management, and monitoring of risk management implementation plan.

Communication and consultation:
The process to plan, communicate, and managing the implementation risk management.

The Risk Management Unit Charter

As a company that is always running Principles of Good Corporate Governance as it has been regulated through the Financial Services Authority Financial Services Authority Regulation No. 2 / POJK.05 / 2014 about Good Corporate Governance for Insurance on the Company, the Company membentukan and preparation of The Risk Management Unit Charter which includes among others the purpose, authority, and responsibility of the Risk Management Unit.

Through the Board of Directors Decision No. 089-1 / DIR / PD / IX / 2014 dated September 24, 2014, the Company adopted Guidelines Risk Management Unit of PT Asuransi Dayin Mitra Tbk, which includes:

1. Background
2. Vision and Mission
3. Purpose and Objectives
4. Formation
5. Structural Risk Management Unit
6. Period Duties
7. Membership Requirements Risk Management Unit
8. Evaluation
9. Duties and Responsibilities of the Risk Management Unit
10. Authority of the Risk Management Unit
11. Meeting of the Risk Management Unit
12. Reporting
13. Code of conduct
14. Monitoring of the Risk Management Unit

1. Background

a. That every company is facing various risks in each of its operations.
b. That such risks must be identified, assessed, monitored, and managed effectively.

2. Vision and Mission

vision:
Being a unit of integrity and dedicated in doing risk management for the Company.

Mission:
Identification, assessment, monitoring and management of risk management in the Company.

3. Purpose and Objectives

The Risk Management Unit Charter is organized as a reference in carrying out his duty to support the principles of Good Corporate Governance, namely Transparency, Accountability, Responsibility, Independence and Equality.

4. Formation

Risk Management Unit was set up by the Financial Services Authority Regulation No.2 / POJK.05 / 2014 about Good Corporate Governance for Insurance on the Company and approved by the decision of the Board of Directors.

5. Structural Risk Management Unit

Risk Management Unit members are appointed and dismissed by the Board of Directors.
6. Period Duties

a. Future tasks set by the Risk Management Unit Directors and applies to the revocation of the letter of appointment.
b. The Board of Directors may terminate at any time if the members of the Risk Management Unit was perceived not carry out its duties as stated in the letter of appointment decision Unit members.

7. Membership Requirements Risk Management Unit

a. High integrity, ability, knowledge, and experience in accordance with the appropriate educational background, and able to communicate well.
b. Have enough knowledge to read and understand financial statements and other reports relating to risk management.
c. Having good knowledge about risk management.
d. Have adequate knowledge of the laws and regulations applicable insurance.

8. Evaluation

Risk Management Unit Performance is evaluated annually in the form of risk management reports.

9. Duties and Responsibilities of the Risk Management Unit

a. To identify the risks.
b. Conduct an assessment of the risks that occur in the Company.
c. Monitoring the parts that have a high risk potential.
d. Conducting effective management of business risks.
e. Creating reports relating to risk management.
f. Maintaining the confidentiality of documents, data, and information.

10. Authority of the Risk Management Unit

Risk Management Unit is authorized to access the information on the risks associated with the Company’s performance of its duties.

11. Meeting of the Risk Management Unit

a. Risk Management Unit held a meeting to take a decision on the determination of risk tolerance.
b. Each meeting of the Risk Management Unit noted in the minutes of meeting, signed by all members of the Risk Management Unit were present.

12. Reporting

a. Risk Management Unit reports to the Board of Directors on each result of execution of their duties.
b. Risk Management Unit makes certain reports if found a significant risk that may affect the Company’s operations.
c. Risk Management Unit reports to be submitted to a third party, such as the Financial Services Authority in accordance with applicable regulations.

13. Code of conduct

a. Uphold the integrity, professionalism in carrying out duties as a Risk Management Unit.
b. Carry out any duties and responsibilities honestly, objectively, and independently for the benefit of the Company.
c. Avoid activities that are contrary to law, ethics and norms prevailing in society as well as in activities contrary to the interests and objectives of the Company.
d. Did not receive a reward for anything outside the established as a tribute to his task.
e. Maintain the confidentiality of Company information and will not disclose information unless it is justified by the legislation in force.
f. Conduct an assessment using the strong evidence and does not use information relating to the Company for other purposes.
g. Develop skills and professional expertise on an ongoing basis.

14. Monitoring of the Risk Management Unit

The Risk Monitoring Committee monitoring the implementation of the Risk Management Unit on duty. Risk management units submit reports on the results of execution of his duty to the Risk Oversight Committee which in turn can provide advice to reduce the risk of a high level to a lower level that can be accepted by the Company.

Consumer Protection Unit

CONSUMER PROTECTION UNIT

Considering on compliance of Financial Service Authority (‘FSA”) regulation No. 01/POJK/2013 dated July 26, 2013 on Consumer Protection in Financial Service Sector which written on article 36 section (1), financial service institutions must have a work and/or function unit to handle and solve consumer complaints.

Business communities Financial Services reserves the right to ensure their good faith Consumers and obtain information and / or documents regarding the Consumer accurate, fair, clear and not misleading.

Business communities of Financial Services shall submit the information up to date and easily accessible to consumers about the products and / or services.

Structure, membership and expertise

So based on Directors SK : 054/DIR/PD/II/2015 The Company established and assembled working guidance of Consumer Protection Unit appointed :

Leader : Sabbath Wibisana
Member :
– Efran DM Sinaga
– Sanna Lauwandy

Duties and Responsibility of Consumer Protection Unit

a. Implement serving and solving consumer complaint mechanicm in coordination with relevant parties.

b. Inform serving and solving complaint mechanicm to consumer.

c. Making report related on Consumer Protection to be submitted to Financial Service Authority (‘FSA”).

d. Deliver accurate, honest, clear and not mislead product information to consumer.

Working Guidance of Consumer Protection Unit

¬ Purpose and Objective

This Consumer Protection Unit guidance were made as a reference on conducting duties on supporting consumer protection on financial sector principles which are transparency, fairness, reliableness, confidentiality and consumers data/information security, also the handling of complaints and the settlement of disputes in a simple, fast and cost efficient.

¬ Background

a. To protect consumer from cheat, deviation, mislead and unclear information.

b. Financial service institutions must delivered accurate, honest, clear and not mislead information.

¬ Establishment

Consumer Protection Unit establishment based on Financial Service Authority (‘FSA”) regulation No. 01/POJK/2013 on Consumer Protection in Financial Service Sector and been authorized with Directors SK.

¬ Vision and Mission

Vision :
To be integrated and competence unit in handling and solving complaints to increase consumer satisfaction.

Mission :
Delivered accurate, honest, clear, not mislead information about product, also receive complaints from consumer and try to solve the complaints.

¬ Structures of Consumer Protection Unit

Members of Consumer Protection Unit are appointed and terminated by Directors.

¬ Tenureship

a. Tenureship of Consumer Protection Unit assigned by Directors and valid until termination of assignment letter.

b. Directors can replace member of Consumer Protection Unit at any time if the member not doing their duties as mentioned in assignment letter.

¬ Requirement membership of Consumer Protection Unit

Highly integrated, have adequate ability, knowledge and experience as their educational background also able to communicated well.

¬ Evaluation

Performance valuation of Consumer Protection Unit is held every year in self assessment report.

Consumer Protection Unit Authority

Consumer Protection Unit have authority to access company information related to their duties implementation.

• Consumer Protection Unit`s Meeting

a. Consumer Protection Unit conduct a meeting to make major impact decision.

b. Every meeting will be resumed and signed by all members attended.

• Reporting

a. Consumer Protection Unit make report to Directors on result of every duties implementation.
b. Consumer Protection Unit make certain report for any case that have majorly impact on financial or company reputation related to consumer protection.

c. Consumer Protection Unit make report to third parties, such as Financial Service Authority (‘FSA”) comply with prevailing regulations.

• Ethics Code

a. Uphold integrity, professionalism in implement duties as Consumer Protection Unit.

b. Implement every duties and responsibility honestly, objective and independently for the company`s concerns.

c. Avoid any activities against law, ethic and norms prevailing in society also activities that against company`s concerns and objectives.

d. Shall not receive any reward outside predetermined for appreciation on their duties.
e. Maintain company confidential information and shall not disclose information unless justified by law.

STANDARD OPERATING PROCEDURES FOR CONSUMER PROTECTION UNIT

GENERAL CONDITIONS

This guidance contents of provision and procedure that aims to form national economic which can grow sustainably and stable, activities in financial sector which held regularly, fair, transparent and accountable, also able to form economic system which can grow sustainably and stable, and able to protect consumer and public concerns.

Financial Service Authority (‘FSA”) publish regulation no. 01/POJK.07/2013 on consumer protection in financial service sector to protect consumer from fraud, deviation, mislead and unclear information from financial service institutions.

Good corporate governance is form and apply good responsibility to the public. Financial service institutions must provide and deliver information about product/service that accurate, honest, clear and not mislead. Other than that, Financial service institutions must deliver current and easy to access information, beside that must using terms, phrases and sentences in Bahasa Indonesia that easy to be understood by consumers.

DEFINITION

¬ Consumer

Are parties whom put their fund and/or utilize service provided in financial service institutions, including client/policyholder in insurance based on regulation in financial service sector.

¬ Financial Service Institutions

Is public bank, rural bank, securities company, investment advisor, custodian bank, pension fund, insurance company, reinsurance company, funding institusion, mortgage company and guarantor company that implement their business activities convensionally as well as syariah.

¬ Loss Insurance Company

Is insurance company that give services in countermeasures for risk of loss, loss of benefit and third party liability, that appear from uncertain event.

5 (five) principles of Consumer Protection in Financial Service Sector :

a. Transparency
b. Fairness
c. Reliableness
d. Confidentiality and consumers data/information security
e. The handling of complaints and the settlement of disputes in a simple, fast and cost efficient.

Ad. a. Transparency :

Financial Service Institutions is responsible to deliver information about product and/or services to consumer, by written, electronic as well as verbal, with clear, complete, on time in means and understandable language so consumer can used it to decision making. Company also conduct education in relation to increase financial literation for consumer and/or public.

Information supplied was apply in documents or other means that can be used as evidence. Information is deliver when explaining to consumer about their rights and obligations, is deliver when making agreement with consumer, contain terms and bind consumer legally, up to date and easy to access by consumer related on product and/or services.

Financial Service Institutions must used terms, phrases, symbol, diagram and/or simple sentences in Bahasa Indonesia which easily understood by consumer. Using of foreign language in documents must be attach with Bahasa Indonesia.

Summary of information and/or services as referred must be made in written and contain information of :

⎫ Benefits of product offer.

⎫ Insured risk.
⎫ Expenses of product/services must be consumer beared .
⎫ Consumer`s rights and obligations.
⎫ Procedure of services and complaints solving if dissatisfaction happen on product usage.
⎫ Other Terms and conditions.

Ad. b. Fairness :

Financial Service Institutions is responsible to treat consumer equally, respectful and not discriminate (discrimination is treating other parties differently based on ethnic origin, religion and race).

Financial Service Institutions is obligated to give equal access to all consumer as consumer classification on product and/or services given, consumer classification by Financial Service Institutions is based on :

⎫ Consumer background.
⎫ Occupation details.
⎫ Average income.
⎫ Purpose and objectives usage of product and/or services.
⎫ Other informations use to determined consumer classification.

Financial Service Institutions must also pay attention on suitability of consumer`s needs and capability, usage of marketing strategy which inflict consumer by utilize consumer`s conditions of having no other choices is forbidden.

Financial Service Institutions is obligated to fulfill principles of stability, equality and fairness in the agreement making with the consumer.

Agreement is arrange base on regulation, in form of digital/electronic and is forbid to :

⎫ Declare diversion of Financial Service Institutions`s responsibility or obligation to consumer.
⎫ Declare that Financial Service Institutions have rights to decline refund of money paid by consumer, if mistake happen in the product or services offered to consumer.

⎫ Declare authorization from consumer to Financial Service Institutions directly or indirectly to do unilateral action on consumer`s mortgage.
⎫ Set up the consumer`s burden of proof, if Financial Service Institutions declare that loss of usage on product and/or services bought by the consumer, is not the responsibility of Financial Service Institutions.

⎫ Give rights to Financial Service Institutions to reduce the usage of product and/or services.

⎫ Declare that consumer is obey to new regulation, additional, advance, and/or changes made unilateral by Financial Service Institutions during the use of benefits product and/or services bought by the consumer.
⎫ Declare authorization from consumer to Financial Service Institutions to charge the responsibility rights, mortgage rights, or security rights on product and/or services that consumer bought in installments.

Financial Service Institutions is mandatory to avoid conflict of interests between Financial Service Institutions with the consumer, and provide information if any potential or conflict of interests happen. Financial Service Institutions is also mandatory to provide special services for consumer with special needs.

Ad. c. Reliableness :

Financial Service Institutions is responsible to give accurate and on time services, thru system, procedure and reliable human resources.

Financial Service Institutions is ensure the services quality and keep secure of funds, data or assets which in the responsibility of Financial Service Institutions.

Financial Service Institutions give receipts of ownership for product and/or usage of services to consumer on time according to the agreement with the consumer.

Financial Service Institutions give report to consumer on balance position and deposits mutation, funds, assets, or consumer obligation accurately and on time according to the agreement with the consumer.

Financial Service Institutions is mandatory to execute consumer`s instruction according to the agreement with the consumer and also responsible on loss occurs as results of error negligence of Financial Service Institutions, caretaker, employee or third party whom work for Financial Service Institutions.

Financial Service Institutions must able to manage caretaker, supervisor and employee to :

⎫ Have not enrich or profit themselves or other parties with inflict the consumer.

⎫ Have not misuse of authority, opportunity, or means having in their position or status, that can inflict the consumer.

⎫ Obey ethics code in serving the consumer according to each Financial Service Institutions.
⎫ Responsible to consumer on action taken by third parties in respect of Financial Service Institutions`s interest.

Ad. d. Confidentiality and consumer`s data/information security :

Is Financial Service Institutions`s responsibility to give protention, keeping secrecy and safety of consumer`s data/information, use only accordingly as interest and intention approved by consumer.

Financial Service Institutions is forbid in any ways, give data and/or information about their consumer to third parties, unless :

⎫ Consumer give written approval to give data and/or private information to any parties, including Financial Service Institutions.

⎫ Mandatory by law regulation (example regulation regarding Knowing Your Consumer (PMN) in every application form to be a consumer for Financial Service Institutions).

Cancellation or part alteration on approval of data and/or information disclosure, done written by consumer in form of statement letter.

Ad. e. The handling of complaints and the settlement of disputes in a simple, fast and cost efficient :

Financial Service Institutions is responsible to handle consumer complaints and settle disputes effectively, efficiently, responsively and on time.

Financial Service Institutions must have and implement serving and solving consumer complaints mechanicm, have a work and/or function unit to handle and solve consumer complaints and also inform to consumer the mechanicm or means of reporting.

Financial Service Institutions must appoint 1 (one) employee in every office to handle settlement of consumer complaints.

Financial Service Institutions forbid to charge any expenses on complaints submitted by consumer. Report regularly on consumer complaints and follow up of serving and solving on consumer complaints to Financial Service Authority (‘FSA”) no later than the 10th day every 3 (three) month.

Financial Service Institutions must immediately follow up and solve complaints no later than 20 (twenty) working days after receive of complaints, and can be extended up to not more than 20 (twenty) working days with conditions as follow :

⎫ Communication obstacles or discrepancy of complaints occur in Financial Service Institutions office`s.
⎫ Financial transaction submitted by consumer need special investigation on Financial Service Institutions`s documents.

⎫ Things beyond Financial Service Institutions`s control occur, example involvement of third parties other than Financial Service Institutions in financial transaction done by the consumer.

Extended period on complaints settlement must be inform by written to consumer who submitted the complaints before the first of 20 (twenty) working days ended.

After received the consumer complaints, Financial Service Institutions must do :

⎫ Internal investigation on complaints as competent, right and objectively.
⎫ Analyse to make sure the complaints is right.

⎫ Convey apologize and offer compensation or improve the product and/or services.

In case of no settlement on the complaints achieve, than consumer can settle the dispute out of court (alternative dispute settlement institutions) or through the court.

But, if not through the court or alternative dispute settlement institutions, consumer can submit petition to Financial Service Authority (‘FSA”) to facilitating complaints settlement of the disadvantaged consumer.

Financial Service Authority (‘FSA”) facilities of complaints settlement :

Consumer can submit complaints with dispute indication between Financial Service Institutions and consumer or violation on certain law regulation in financial service sector to Financial Service Authority (‘FSA”).

Consumer will be facilitated with complaints settlement from Financial Service Authority (‘FSA”) with dispute indication in financial service sector, if fulfill conditions as below :

a. Consumer suffered financial loss

⎫ Financial Service Institutions in general insurance sector maximum of IDR 750.000.000 (seven hundred fifty million).

⎫ Financial Service Institutions in banking, capital market, pension fund, life insurance, funding, mortgage companies, or guarantor maximum of IDR 500.000.000 (five hundred million).

b. Consumer submit written petition be accompanied with supporting documents related with the complaints.

c. Financial Service Institutions have done effort for complaints settlement but consumer do not receive the settlement and have pass the limit assigned by Financial Service Authority (‘FSA”) regulation.

d. The complaints submitted is not on going dispute or have been resolved by arbitration institutions or by court or by other mediation institutions.

e. The complaints submitted is civil in nature.

f. The complaints never been facilitated by Financial Service Authority (‘FSA”).

g. Submission is not more than 60 (sixty) working days since the date stated on letter of complaints settlement be delivered by Financial Service Institutions to consumer.

Facility of complaints settlement given by Financial Service Authority (‘FSA”) is means to arrange a meeting between consumer and Financial Service Institutions to review the issues fundamentally to obtain settlement aggrement.

Financial Service Authority (‘FSA”) will appoint facilitator for carry out functions of complaints settlement, starting facility process in form of agreement that contain of :
⎫ Agreement to choose complaints settlement that facilitated by Financial Service Authority (‘FSA”).
⎫ Obey and abide on facility regulation which set by Financial Service Authority (‘FSA”).

Implementation of facility process until signed on deed of agreement is done not more than 30 (thirty) working days after consumer and Financial Service Institutions sign the facility agreement, and can be extended up to 30 (thirty) working days.

The deal made from Financial Service Authority (‘FSA”) facilitation poured in deed of agreement that signed by both parties. In case of no settlement archieve, then the disagreement poured in result agenda of facilitation by Financial Service Authority (‘FSA”) which also signed by both parties.

• Internal Control

a. Directors and caretaker of Financial Service Institutions responsible on obedience of implementation Financial Service Authority (‘FSA”)`s regulation on Consumer Protection in Financial Service Sector.

b. Board of commissioners or supervisor of Financial Service Institutions oversight on Directors or caretaker responsibility toward this regulation.

c. Financial Service Institutions establish reporting system to guarantee optimalization of Directors or caretaker supervision on obedience of regulation implementation.

d. Financial Service Institutions have and apply policy and written procedure on consumer protection (including in this Standard Operating Procedures) and also mandatory be obeyed by caretaker and employee of Financial Service Institutions.

Financial Service Authority (‘FSA”) will conduct supervision on obedience of Financial Service Institutions on provision implementation this regulation, Financial Service Authority (‘FSA”) authorities on asking data and information regarding with provision implementation consumer protection and performed regularly or at any time if needed.

• Sanction

Financial Service Institutions and/or parties that violate provision in Financial Service Authority (‘FSA”) regulation will be subject to an administrative sanction, such as :

1. Written warning.
2. Fine/obligation to pay certain amount of money.
3. Restrictions on business activities.
4. Suspension of business activities.
5. Revocation of business activities.
Administrative sanction can be subject to with or without prior written warning sanction, fine sanction can be subject individually or together with others sanction.

Amount of sanction assigned by Financial Service Authority (‘FSA”) based on provision of administrative sanction in form of fined that apply for every financial service sector. Financial Service Authority (‘FSA”) can announce to the public regarding the imposition sanction of Financial Service Institutions.

Compliance Unit

COMPLIANCE UNIT

Based on the Regulation of Financial Services Authority No. 2 / POJK.05 / 2014 About Corporate Governance Good For Insurance Companies, article 7, Insurance and Reinsurance Company shall have a Board of Directors member in charge of the compliance function.

Member of the Board of Directors is in charge of the compliance function can not be held by members of the Board of Directors is in charge of insurance technical functions, the marketing function and financial functions, except for the chief executive.

Insurance and Reinsurance Company shall have a working unit or officers of the compliance function. Unit or officers of the compliance function responsible for assisting the Board of Directors in ensuring compliance with the laws and regulations in the field of insurance undertakings and other legislation.

Unit or officers of the compliance function is responsible to the members of the Board of Directors are in charge of the compliance function.

Structure, Membership and Expertise

That in order to comply with the Financial Services Authority No. 2 / POJK.05 / 2014 About Corporate Governance Good Share Insurance Company dated March 28, 2014, the Company establishes a working unit or officers of the compliance function Directors’ Decree No. 083-2 / DIR / PD / VIII / 2014 dated August 14, 2014 appointed:

Responsible : Dawidju Widjaja
Member : Irvan Fiska

Companies carry out the functions of compliance with laws and regulations, internal policies and agreements with other parties.

THE COMPLIANCE UNIT CHARTER

As a commitment to implement the functions of compliance with legislation mapun Regulations issued by the Financial Services Authority, the Company established the Working Guidelines on Compliance Unit established and approved by the Decree of Directors No. 083-1 / DIR / PD / VIII / 2014 dated August 14,2014 include:

1. Background
2. Vision and Mission
3. Purpose and Objectives
4. Formation
5. Structure of the Compliance Unit
6. Period Duties
7. Membership Requirements Compliance Unit
8. Evaluation
9. Duties and Responsibilities of the Compliance Unit
10. Authority of the Compliance Unit
11. Meeting of the Compliance Unit
12. Reporting
13. Code of conduct

1. Background

a. That every company needs to conduct its business in accordance with the law and other applicable regulations.

b. Companies need to collect and submit a report to the FSA and other third parties in a timely manner.

c. Implementation of the rules and applicable law reform and requires the handling of a separate unit.

2. Vision and Mission

Vision:
Being Unit is dedicated to the highest integrity and adherence to the implementation of the regulations and laws in force.

Mission:
Performing the task of monitoring the renewal of any rules or laws applicable Insurance and coordinate application to the Company.

3. Purpose and Objectives

Working Guidelines Compliance Unit is structured as a reference in carrying out his duty to support the principles of Good Corporate Governance, namely Transparency, Accountability, Responsibility, Independence and Equality.

4. Formation

Compliance Unit was established by the Financial Services Authority Regulation No. 2 / POJK.05 / 2014 and ratified by the Decree of Directors.

5. Structure of the Compliance Unit

Compliance Unit members are appointed and dismissed by the Board of Directors.

6. Period Duties

a. The period of operation of the Compliance Unit established by the Board of Directors and is valid until the revocation of the appointment.

b. The Board of Directors may terminate at any time if the member of the Compliance Unit was perceived not carry out its duties as stated in the letter of appointment of members of the decision.

7. Membership Requirements Compliance Unit

a. High integrity, ability, knowledge, and experience in accordance with the appropriate educational background and be able to communicate well.

b. Have adequate knowledge of the laws and regulations applicable Insurance Company as well as the renewal of any such regulations.

c. Have a good coordination capabilities to all sections of the implementation of applicable laws and their renewal.

8. Evaluation

Unit members’ performance is evaluated annually in the form of self-assessment.

9. Duties and Responsibilities of the Compliance Unit

a. Conducting periodic monitoring of the regulations and laws in force and the Insurance reform of the law.

b. To coordinate the submission related to each section of the report required by the FSA so that accumulation of statements made at the time determined.

c. Monitoring for the parts in the company to ensure the Company has conducted its business in accordance with the statutory provisions applicable.

d. Submit a report on the performance of its duties to the Board of Directors and Company Secretary.

10. Authority of the Compliance Unit

Compliance Unit is authorized to access information relating to the Company’s performance of its duties.

11. Meeting of the Compliance Unit

a. Compliance Unit held a meeting to discuss the rules and regulations including the renewal of the law to be applied to the Company.

b. Each meeting of the Compliance Unit noted in the minutes of the meeting were signed by all present members of the Compliance Unit.

12. Reporting

a. Compliance Unit reports to the Director of Compliance and Corporate Secretary on the results of execution of their duties.

b. Compliance Unit makes certain reports if there is a case with major implications for the Company related to compliance with the applicable legislation.

13. Code of conduct

a. Uphold the integrity, professionalism in carrying out duties as a Compliance Unit.

b. Carry out any duties and responsibilities honestly, objectively and independently solely for the benefit of the Company.

c. Avoid activities that are contrary to law, ethics, conflict of interests and norms prevailing in society as well as in activities contrary to the interests and objectives of the Company.

d. Did not receive a reward for anything beyond those already established as a tribute to his task.

e. Maintain the confidentiality of Company information and will not disclose such information unless justified by the legislation in force.

f. Develop skills and professional expertise on an ongoing basis.

Unit of Know Your Customer Principles

KNOW YOUR CUSTOMER PRINCIPLES UNIT

Know Your Customer is the principle applied Non Bank Financial Institutions (NBFIs) to know the background and identity of Customer, monitor account and customer transaction, as well as the report of Suspicious Transactions and Financial Transactions Cash, including financial transactions related to Practice Funding Terrorism.

Based on the Minister of Finance Regulation No. 30 / PMK.010 / 2010 concerning Application of Know Your Customer For Non-Bank Financial Institutions, Article 2, NBFIs are required to apply the Know Your Customer (KYC).

Know Your Customer in question is obliged in terms of:

a. Establish policies and procedures for customer acceptance.

b. Establish policies and procedures in identifying the Customer.

c. Establish policies and procedures for monitoring and implementation of customer transaction accounts.

d. Establish policies and risk management procedures relating to the application of Know Your Customer Principles.

Structure, membership and expertise

In the implementation of Know Your Customer, NBFI shall establish a special unit or assign members of the board or directors or officers directly to directors or managers responsible for the implementation of Know Your Customer Principles.

Therefore, the Company formed a special working unit named Implementation Unit Know Your Customer authorized by Board of Directors Decree No. 055 / DIR / PD / II / 2015 dated February 9, 2015 to appoint:

Leader : Maudia Abdulkadir
Member : Hanny Dumalang

Before establishing the unit, the Company has already appointed or commissioned member of the board of directors or managers or officers directly to directors or managers responsible for the implementation of Know Your Customer and after the unit was formed responsibilities regarding Know Your Customer entirely the responsibility of the unit.

The company also always apply KYC for each customer who does insurance cover, KYC conducted at the time of acceptance of risk will be assessed on each customer. KYC is done by creating a special form for each type of customer that the customer agents, individual customers / individuals, as well as customers in the form of legal entities / companies.

Companies are always consistent in every year to socialize KYC and report on the dissemination activities to the Financial Services Authority in accordance with the applicable provisions of 15 after the fiscal year ends, according to the Ministry of Finance Regulation No. 30 / PMK.010 / 2010 concerning Application of Know Your Customer for Non-Bank Financial Institutions, article 33, paragraph 4, where NBFI shall submit report on the implementation of a training program Know Your Customer to the Minister of Finance through the Chairman of the Capital Market Supervisory Agency and Financial Institution on January 15 next year.

THE UNIT OF KNOW YOUR CUSTOMER PRINCIPLES CHARTER

On February 9, 2010, the Minister of Finance has set the Finance Minister Regulation No. 30 / PMK.010 / 2010 concerning Application of Know Your Customer Principles for Non-Bank Financial Institutions (NBFIs).

Interest Regulation of the Minister of Finance in an effort to create the industry’s non-bank financial healthy which refers to the best practices that apply internationally (international best practices) and protected from the possibility of being misused for financial crimes, terrnasuk money laundering and financing of terrorism, both of which made directly or indirectly by the perpetrators.

The Ministry of Finance Regulation requires each NBFIs to draft Guidelines for Application of Know Your Customer (KYC).

Preparation of P4MN intended as guidelines for all elements of the management and staff of PT Asuransi Dayin Mitra Tbk (the Company) including the Company’s agents in carrying out the application of Know Your Customer Principles.

Within this P4MN organize some of the following:

1. Responsible for the implementation of Know Your Customer (KYC).
2. Customer acceptance policies and procedures.

3. Policies and procedures to identify and verify the customer.

4. Policies and procedures for monitoring and implementation of customer transaction accounts.
5. Policies and risk management procedures relating to the application of PMN.

P4MN the preparation is intended that the Company has no firm standards for recognizing the profile clients so that in turn the Company can identify any unusual transactions that may be Suspicious Transactions and the Financial Cash Transactions.

Based on the results of such identification, the Company submit Suspicious Transactions Report or STR and / or the Financial Cash Transactions Report or CTR to the Center for Financial Transaction Reporting and Analysis (PPATK). In addition, P4MN also intended to allow the Company to submit a report and a transfer of funds from abroad to PPATK.

The Suspicious Transactions Report or STR is:

1. Financial transactions deviating from the profile, characteristics or pattern of transactions conducted by the Customer;

2. Financial transactions are reasonably suspected to do in order to avoid reporting that must be performed by the Company;

3. The financial transactions or aborted by using assets suspected proceeds of crime; or

4. Financial transactions requested by PPATK to be reported because it involves assets suspected proceeds of crime.

Cash Financial Transactions abbreviated CFT is withdrawal, deposit, or deposit made with cash or other payment instruments through the Company.

Transactions Improper transaction, including but not limited to financial transactions were not unusual large transactions conducted by parties who do not have economic links are clear, the transaction is expected to be used to commit unlawful acts, and / or transactions Account in accordance with the pattern of activity.

The Company has had a Guidelines for Application of Know Your Customer (P4MN) that has been adapted to the Minister of Finance Regulation No. 30 / PMK.010 / 2010 concerning Application of Know Your Customer Principles for Non-Bank Financial Institutions (NBFIs).

The Company is committed to execute and implement the Guiding Principles Know Your Customer, one of them during the process of acceptance is to require every new business or renewal policies where customers do not fill in the form of Know Your Customer (KYC) must fill out the form and acceptor ensure that charging Form P4MN have filled out completely and correctly by the customer.

The identity of the Customer or KYC form made based business source was obtained for example through individual direct customers or clients are legal entities / institutions, clients of the agency, clients of brokers, and customers of the bank.

In 2015, the Company made adjustments to the Guidelines for Application of ‘Know Your Customer (P4MN) regarding Category Usage Services Potentially Make Money Laundering that under Regulation Head of Reporting and Financial Transaction Analysis No. PER-02 / 1:02 / INTRAC / 02/15 dated February 3, 2015, about the Service User Categories Potentially Make Money Laundering.

Under the regulation the Company has adapted the Guidelines for Application of ‘Know Your Customer (KYC) and report such adjustments to the Financial Services Authority.

In 2015 the Financial Services Authority Financial Services Authority issued Regulation No. 39 / POJK.05 / 2015 neighbor Implementation of Anti-Money Laundering and Combating the Financing of Terrorism By Financial Service Providers in Financial Industry Sector Non-Bank which came into force on December 28, 2015.

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) is the prevention and eradication of the crime of Money Laundering and Financing of Terrorism.

Implementation Unit Know Your Customer principles that have been established will be responsible for conducting the preparation and updating of guidelines for the implementation of AML and CFT, ensure their information systems and procedures to identify the Customer adequate, including ensuring that the forms related to the Customer has to accommodate the data required in the application program AML and CFT.

Guidelines for the implementation of AML and CFT will be aligned with the KYC guidelines that already exist and will be reported to the FSA in 2016.

Internal Audit Unit

  • The Scope of Audit:

Internal control is established after due consideration of the control environment that encompasses the management style and employees’ attitudes towards the importance of management control, namely the philosophy and operating style of the management, organization structure and human capital practices as a whole and is carried out together with adequate assessment towards relevant risks as well as is an effective monitoring mechanism.

Even so, it is important to realize that existing internal control is only able to provide reasonable assurance and does not provide full guarantee towards any misrepresentation or any material loss.

The scope of audit includes the management function, and it covers the financial and non financial audit.

  • Financial Audit:

The financial audit is oriented more to the financial aspects. The objective of the financial audit is the fairness of the financial statements presented by the management.

Currently, the orientation of the internal audit is focused on the operational audit in the Company. The audit of the financial statements is conducted by an External Auditor at the time of the annual general audit. General audit is conducted by a Public Accountant Firm.

  • Operational Audit:

The objective of the operational audit is the assessment of the efficiency, effectiveness and the economics of all activities. The audit result is not only a formal corrective action but to improve the organizational performance.

  • Compliance Audit:

The purpose is to examine whether the implementation of activities is in accordance with the rules and regulations.

Regulations that are used as the criterias in the compliance audit are:

  • The regulations that are stipulated by the government or other institutions/relevant bodies; and

  • The policies/system and procedures that are determined by the Board of Directors.

  • Fraud audit:

The objective is to reveal cases of potential corruptions, collusions and nepotisms that could potentially harm the Company and yet gains as an individual as well as a group or as a third party.

  • Structure or position of the internal audit unit:

Head : Budi Waluyo

Member: Woen Tay Cun

Member: Christi Yanti

The Internal Audit Unit is the Company’s internal control which is under the President Director and consists of 3 personnel. The Internal Audit Unit is chaired by a Head of Unit who is responsible and reports to the President Director.

  • Independency of An Internal Auditor:

A reliable internal control is needed to ensure the existence of a clear division between duty, lines of authority as well as policy and procedure, including the security of the Company’s assets.

The Head of the Unit and its members of the Internal Audit work independently such as:

  • Not a shareholder directly or indirectly.

  • Not affiliated with any member of the Board of Commissioners, the Board of Directors or the main shareholders of the Company.

  • Does not have business relationships directly or indirectly with the Company’s business.

  • Not a person who has worked or had an authority and responsibility to plan, lead, run or supervise the Company in the last 6 (six) months.

  • Job Description of The Task Force:

Duties and Responsibilities of The Internal Audit Unit:

  • Determines and implements the Internal Audit’s annual plans based on risks priority which is appropriate with the Company’s goals.

  • Examines and evaluates the implementations of the internal control and the risk management system based on the Company’s policies.

  • Verifies and assess the efficiency and effectiveness in finance, accounting, operational, human capital, marketing, information technology and other activities.

Phases of an audit is conducted as follows:

  • Assignment Preparation:

In this phase, it starts with the appointment of a team that will be involved in an assignment. This is considered as an evidence that the audit is carried out based on directives from the superiors and not of personal will.

  • Preliminary Audit Survey:

The process to get a thorough understanding of the risks of each department/branches that will be audited.

This survey consists of the analysis steps of the risks occurring in each department/branches.

This survey is carried out to obtain and to analyze the relevant information for risks assessments in an efficient and effective way.

  • The Implementation of The Audit Examinations:

The team will then determine the scope of an audit to be examined.

In this step, the team will find evidences as prove that the information obtained in the preliminary survey is valid.

The evidence may be regarded as a preliminary legal evidence if the evidence is obtained carefully, accurately and appropriately in respect of the audit findings or an audit summary.

  • The Completion of An Audit Assignment:

The last step of the field work process. The Team will finalize the findings that have been summarized during the field work process.

The Team has with a reasonable assurance that the findings are compiled and subject to the procedures, objectives and independent.

On confirming of the findings with the auditee, is based on a prepared wide range of data to support these findings, and presented along with suggested recommendations.

The team will then request for a written response in a form along with the willingness to follow up its recommendations.

In the form it is included a due date of implementations of the recommendations as well as designating the person in charge.

As a conclusion, the team will present the audit results to the audited Department/Branch/representing party.

The auditee can know of the findings and the resulting recommendations from the audit process. The audit reports will be useful in the decision making process in the future.

  • Reporting of The Audit Results:

Upon completion of the implementation of its examinations, based on documentation of the Audit Working Papers (starting from the planning/preparation up to the findings and recommendations that has gained a response from the auditee), the Head and members of the audit team then prepares the audit report to be submitted to the President Director and the Board of Commissioners

  • Monitoring:

As an implementation of monitoring, an analysis is carried out based on an agreement approved by the auditee related to the implementation of the recommendations given.

Collaboration with The Audit Committee:

  • Sets up a program to evaluate the quality of the internal audit activities that have been done.

  • Carries out a particular audit if needed.

  • Number of employees of the Internal Audit Unit:

The Internal Audit is a unit under the President Director and consists of 3 persons.

The Internal Audit is chaired by a Head of Unit who is responsible and reports to the President Director.

The Head of the Unit has adequate expertise in carrying out an internal audit. He actively participated in various training and seminars held by several insurance agencies and the Financial Services Authority (OJK).

He also participates in the dissemination and discussion of the regulation of insurance under the coordination of The General Insurance Association of Indonesia and the Financial Services Authority (OJK).

The Internal Audit works independently and objectively through an audit as well as through suggestions and recommendations for improvements which is included in the reports submitted to the President Director.

  • Reporting of the result of the implementation of duties of the Internal Audit:

Internal Audit Unit carries out its duties to audit the Branches, Marketing Offices and Departments at the Head Office.

A report is submitted to the President Director who then will follow up its recommendations and the subjects to be improved.

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