Academic journal article European Research Studies

Comparative Study on Consumer Protection in Indonesia through Mechanism of Product Liability Insurance

Academic journal article European Research Studies

Comparative Study on Consumer Protection in Indonesia through Mechanism of Product Liability Insurance

Article excerpt

1. Introduction

The insurance institution becomes important to transfer the risk of the producer's responsibility for the product to be consumed by the consumer, if the consumer has an accident and/or loss resulting from consuming or using the product. Insurance also has a function and purpose that is very far and wide beyond the interests of individuals and includes risks that can be taken into account and that can not be predicted.

Some important reasons, for the existence of research on the transfer of responsibility of business actors through product liability insurance. First, to protect consumers from losses due to an accident due to consuming or using the product. Second, reduce the burden of producers and also consumers, against losses due to accidents consuming or using products. Third, the improvement of product quality.

In Indonesia, the desire to realize Consumer Protection law efforts has been around since the 1980s. The effort was only realized in 1999 with the issuance of Law No. 8 Year 1999 on Consumer Protection. As revealed by Colin Scott and Julia Black, that the problems facing consumers are:

"Do you believe in a used car salesman giving the right information about a car? Will the new drug you buy will have an impact? Does your developer know what he really does? Does HP emit brain-fighting airwaves? Is chocolate that is said to contain low fat content is really low fat content? Do you pay the correct price for your newly purchased stereo? Do you have any idea how the price should be?"

Consumer regulations are intended to establish that consumers are protected against their rights to, producers or suppliers of goods and services.

The raising of Law No. 8 Year 1999 on Consumer Protection, has given hope to the people of Indonesia, namely the hope that consumers get adequate protection for losses suffered by consuming a goods and services. The protection is not only for low-quality goods but also for goods that endanger human life. For example, food, medicine and drinks. Law No. 8 Year 1999 on Consumer Protection, has guaranteed legal certainty for consumers. Prior to the introduction of this law, many people viewed the position of consumers as weak and business actors less concerned about consumer rights. The Civil Code, the Criminal Code, and other regulations relating to consumer protection are not sufficient.

The importance of product liability insurance is to reduce the burden of producers and consumers, on losses from accidents consuming products. Free trade and technological progress have implications for the diversity of products traded by producers in a market, in terms of type, quality, price or rule of law attached to the product. All this will certainly result in the amount of risk that will be faced both by consumers and producers, in a both relationship. Risk is an uncertain condition that results in loss and insecurity, this is where the insurance agency is needed as a risk transfer agency.

Insurance is intended to anticipate the claim for damages arising from the use of the products produced or sold, But on the other hand, insurance is also a cost associated with the responsibility of products borne by the company in its business activities. In terms of risk transfer needs, the insurance company acts as the insurer for the lawsuit filed by the consumer. Insurance institutions are intended to meet the demands or demands of society in creating a balance of interests of consumers and business actors or producers, by providing a scope of guarantee on the risk of liability resulting from an accident or damage suffered by the consumer.

In Indonesia, although the practice of the mechanism of responsibility insurance, but the arrangement is still partial and not specifically the legislation governing it. Frans Lamury Chairman of the Indonesian Insurance Mediation Board (BMAI) confirmed that insurance products in the form of product liability insurance already existed in Indonesia since the fifties and more developed again in the seventies. …

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