Main Article Content
Abstract
Mutual insurance will only have a law that specifically regulates it in 2023. The regulation in question is through omnibuslaw Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector. In fact, the only mutual insurance company in Indonesia (AJB Bumiputera 1912) is more than 100 years old. So it is natural that the issue of defaults that harm legal protection for policyholders cannot be resolved optimally. Although realised, the concept of mutualism in the insurance company really illustrates high idealism. Both in terms of mutuality, solidarity, help, economic democracy, and cooperation for the welfare of its members. The members in this case are the policyholders, who are also the owners of the company. This research employs a normative research method, which is a legal research that focuses on the prevailing legal norms. Through statute approach, conceptual approach, and comparative approach, this article affirms that the nature of mutual legal entity, no matter how good it is, if it is unable to provide legal protection for policyholders then it can only be read as a mere "theory", not realised in reality. A paradox that provides valuable lessons, especially in the governance of insurance companies in Indonesia. There are two types of legal protection for policyholders, namely preventive and repressive legal protection, which are realized through laws and regulations, contracts, and court rulings through bankruptcy petitions filed by creditors or the Financial Services Authority (OJK).