Jakarta (ANTARA) - The life insurance industry paid Rp74.66-trillion claims and benefits during the 2021 first semester, a 6.1-percent rise, from Rp70.36 trillion during the corresponding period of 2020, the Indonesian Association of Life Insurance (AAJI) stated.

"The payment of claims and benefits is clear proof of the insurance industry's commitment to customers," AAJI's Head of Operations and Consumer Protection, Freddy Tahmrin, noted during an online press conference in Jakarta, Tuesday.

Of the total payments, the life insurance industry paid COVID-19-related claims worth Rp3.74 trillion in the first half of 2021.

During the first half of 2021, Tahmrin revealed that 71 percent of the claim value was the benefit of the redemption value or surrender and partial withdrawals.

The redemption value grew by 2.5 percent, or a total of Rp43.35 trillion, while partial withdrawals increased by 61 percent, or a total of Rp9.77 trillion.

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"The community can utilize this benefit during difficult times to boost economic resilience and maintain the quality of life of Indonesian families," Tahmrin stated.

In addition to the redemption value and partial withdrawals, a total of 11 percent of the claims and benefits are given to the deceased and seven percent for health.

He also conveyed that the total benefits from claims for death during the first semester of 2021 climbed by 42.6 percent to reach a total of Rp7.84 trillion, from Rp5.5 trillion during the first semester of 2020.

Meanwhile, the benefit of health claims also rose 3.5 percent in the first half of this year, with a total of Rp5.4 trillion, as compared to Rp5.22 trillion in the first semester of 2020.

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Translator: Agatha O, Azis Kurmala
Editor: Rahmad Nasution
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