Validity of Indonesian Life Insurance Contract Through Telemarketing

Abstract

Along with the development of technology, business activity is developed as well by the uitilization of technology and information in doing any kinds of business which one of them is life insurance business. Practically, Bank and Insurance Company are cooperate each other in doing their business so called as bancassurance, where the Insurance Company may offering their insurance product to the Bank's customer through a phone call done by telemarketers service, by which this marketing method known as telemarketing. In practice, telemarketing is when the offer and acceptance between the insurer and the insured is occur in order to achieve mutual consent, or otherwise a rejection from one of the party. However, telemarketing method in life insurance agreement arising issues because it has higher possibility in creating misunderstanding between both the insurer and the insured, rather than the traditional (face-to-face) method. This research was aimed to explain the legal validity of life insurance contract through telemarketing, viewed from the legal aspect of agreement and the protection of the insured in the usage of telemarketing in insurance agreement. This research used qualitative method, means that the collected data were analyzed qualitatively and descriptively regarding the legal validity of indonesian life insurance contract which is done through telemarketing method. Actually, telemarketing method is created for business man or woman who does not have much time to come to the Insurance Company then meeting face-to-face with the insurance official, by which in some case it does helps yet in some other case it goes otherwise. The result of the research showed that telemarketing was to offer the life insurance product through telephone. However, the life insurance agreement through telemarketing is only an agreement before the contract, which was nonbinding. The agreement through telemarketing considered as an oral agreement, where an offer and acceptance process occurs before the parties agreed to enter into a contract. The problem which often rises from this method is a defect of consent between both the insurer and the insured, by which it shall be make the contract voidable as it stipulated under the Article 1321 of Indonesian Civil Code. It is important for the telemarketers as the representative of the Insurance Company to fulfill its obligation in giving the prospective insured a detail, complete, and clear information then the prospective insured could easily understand and its also decrease the possibility of consent defection. Moreover, it is important for the prospective customers to considered the advantages and disadvantages in taking the insurance offer, then they would not easily say "yes" that might end up cause losses for them.