Court Dismisses Lawsuit Over 2.5 Billion Rupiah Policy
Hanwha Life’s Yeouido headquarters, 63 Building (provided by Hanwha Life)
Hanwha Life Insurance’s Indonesian subsidiary has prevailed in a legal dispute with the bereaved family of a deceased policyholder over the payment of a death insurance benefit. The court accepted a procedural objection raised by Hanwha Life and dismissed the case without proceeding to a substantive hearing.
The South Jakarta District Court issued a dismissal ruling on May 7 on the insurance claim and breach-of-contract lawsuit filed by plaintiff Maria against Hanwha Life. The court, through its written ruling, made clear that under the policy’s dispute resolution clause, mediation or arbitration through the Financial Services Alternative Dispute Resolution Institution (LAPS SJK) must precede any judicial proceedings. The court determined that the lawsuit, having bypassed this mandatory preliminary process, was premature and failed to satisfy the required legal conditions.
The case originated in July 2024 when the plaintiff’s husband, Husin, took out a life insurance policy valued at 2.5 billion rupiah, approximately 200 million won (approximately $138,000). Just one month after the policy was taken out, Husin died of cardiac arrest, and the bereaved family filed an insurance claim. However, Hanwha Life placed payment on hold and launched a detailed investigation, citing suspicions arising from the short interval between policy inception and death. The family subsequently filed a civil lawsuit, alleging that Hanwha Life was delaying performance of its contractual obligations without justifiable cause.
Hanwha Life mounted its defense on the basis of forensic findings from the medical team at the University of Indonesia (UI), the country’s most prestigious national university, and RSCM Hospital. The investigation revealed that Husin had deliberately attempted self-harm at his home four days before his death, and that despite medical staff recommending hospitalization, the plaintiff had forced his discharge against medical advice. Left in an unsanitary environment without care, Husin ultimately died from worsening wounds and infectious complications. Hanwha Life classified this as “deliberate neglect and abandonment,” constituting a ground for exemption under the policy terms.
The court broadly recognized the legal validity of the evidence and policy terms submitted by Hanwha Life. The dispute resolution clause set out in the contractual documents was established through a voluntary agreement between the parties, and the court held that filing a lawsuit in circumvention of that clause undermines legal stability.
Hanwha Life made clear that it bears no obligation to pay insurance benefits in a case involving a deliberate attempt at self-harm and acts of abandonment. The court accepted Hanwha Life’s objection and dismissed the lawsuit, while also ordering the plaintiff to bear all litigation costs in full.
Yoon Young-sil
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