Russian Journal of Agricultural and Socio-Economic Sciences (Sep 2022)
LIABILITY LIMITATION OF BROKER COMPANIES’ INSURANCE ON LEGAL ACTIONS THAT POSING THREAT TO POLICY HOLDERS
Abstract
The development of Human Resources capabilities and changes in business patterns that are increasingly diverse in the 4.0 Era requires business people to make a lot of extra efforts aimed at meeting the needs of the community in all aspects of business, both in the manufacturing sector and in the service sector. As a result, there is a shift in the concept of the working relationship between workers and employers. The demand for the availability of workers in companies who have certain competencies as stipulated by the Ministry of Manpower in the regulations concerning the Indonesian Work Competency Standards (SKKNI) has implications for many things: increased obligations of the authorities in providing better remuneration, the contribution of roles, authority, and responsibilities more than ordinary workers. The consequence is that when responsibility and authority are given, it creates accountability, and then what is the limit for the company to be responsible for actions taken by the professional employees. The normative juridical research method is used in this study with a statute approach, namely by analyzing the provisions of Law Number 40 of 2014 concerning Insurance, especially the articles that discuss Insurance Brokerage Companies, Law Number 40 of 2007 concerning Limited Liability Companies, and the legal relationship between Insurance Broker Companies and Insurance Brokers in the form of work and liability agreements subject to Law Number 13 of 2003 concerning employment. Another approach used is the conceptual approach, namely by approaching the concept of absolute or limited civil liability for Limited Liability Companies as reflected in the provisions of Article 1367 Code of Civil Law. Due to the actions of employees who make negligence/mistakes, violations of law and ethics must be the responsibility of the Limited Liability Company, including employee actions that have implications for risk, all of which can be limited by contracts/work agreements, laws and regulations and or by the applicable professional code of ethics.
