A Legal review of life insurance policies as a guarantee for obtaining credit from banking institutions (Research study at PT. Allianz Medan)

Mega Ola Silvia and Isnaini Isnaini
Additional contact information
Mega Ola Silvia: Universitas Medan Area
Isnaini Isnaini: Universitas Medan Area

Priviet Social Sciences Journal, 2025, vol. 5, issue 10, 26-39

Abstract: This article aims to determine the significance of problems related to the use of life insurance policies as credit collateral in terms of practice, regulation, and theory. This study focuses on the legal position of life insurance policies as credit collateral and the mechanism and banking use of life insurance policies as credit collateral in banking institutions at PT. Allianz Medan. This study uses Empirical Normative Juridical Legal Research based on interviews as support. In the Indonesian legal system, life insurance policies can be used as collateral to obtain credit lines from such institutions. General provisions on collateral are contained in the Civil Code (KUHPerdata), especially in Book II concerning property and property rights, and in Law Number 40 of 2014 concerning Insurance, which regulates the basic principles, rights, and obligations of the parties in insurance agreements. The mechanism for utilizing life insurance policies as credit collateral in banking institutions studied at PT. Allianz Medan demonstrates a legitimate and structured practice that adheres to national legal provisions, such as the Civil Code, Fiduciary Guarantee Law, and Insurance Law. By transferring the right to receive policy benefits to the bank as collateral, either by replacing the beneficiary or the fiduciary, this practice provides legal certainty for creditors and protection from risk for debtors.

Keywords: Insurance Policy; Guarantee; Credit (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=9661 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:pssjpv:664

Ordering information: This journal article can be ordered from
https://journal.priv ... SSJ/article/view/664

DOI: 10.55942/pssj.v5i10.664

Access Statistics for this article

More articles in Priviet Social Sciences Journal from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().