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An Endorsement is a formal addition or modification to an existing insurance policy or legal document in Indonesia. It changes the original terms by adding, removing, or updating specific coverage details or conditions without creating an entirely new contract.

Insurance companies commonly use endorsements to adjust policy terms when circumstances change - like adding new coverage, changing beneficiaries, or updating property values. Under Indonesian insurance law, both the insurer and policyholder must agree to these changes, and the endorsement becomes legally binding once attached to the original policy document.

Use an Endorsement when you need to modify an existing insurance policy without creating a new contract. Common situations include adding a new vehicle to your auto insurance, updating the value of insured property, or changing beneficiaries on a life insurance policy in Indonesia.

Insurance companies require Endorsements for significant changes that affect coverage or risk levels. For example, when expanding a business location, adding valuable equipment, or changing business operations that impact risk exposure. In Indonesian insurance practice, these modifications need proper documentation through Endorsements to maintain valid coverage and ensure claims can be processed smoothly.

• General Policy Endorsements: Modify basic insurance terms like coverage amounts, deductibles, or policy periods for any type of insurance in Indonesia
• Property Value Endorsements: Update the insured value of buildings, equipment, or inventory as market values change
• Named Insured Endorsements: Add or remove people or entities covered under the policy
• Coverage Extension Endorsements: Expand existing coverage to include additional risks or specific situations
• Restriction Endorsements: Limit or exclude certain types of coverage based on risk assessment or regulatory requirements

• Insurance Companies: Draft and issue Endorsements to modify existing policies, calculate adjusted premiums, and maintain compliance with Indonesian insurance regulations
• Policyholders: Request and agree to policy modifications, pay adjusted premiums, and ensure their coverage meets current needs
• Insurance Agents: Facilitate Endorsement requests, explain changes to clients, and help process documentation
• Legal Advisors: Review Endorsement terms for compliance and protect client interests
• OJK Regulators: Oversee insurance practices and ensure Endorsements comply with Indonesian financial services laws

• Original Policy Details: Gather the existing policy number, effective dates, and current coverage terms
• Change Documentation: Collect proof of changes requiring the Endorsement (property values, new vehicles, business expansion)
• Risk Assessment: Document any new circumstances affecting insurance risk levels
• Policyholder Information: Verify current contact details and any changes in ownership or beneficiaries
• Premium Calculations: Determine how the changes affect insurance premiums under Indonesian regulations
• Compliance Check: Review OJK requirements for the specific type of insurance modification

• Policy Reference: Original policy number, issue date, and parties involved
• Modification Details: Clear description of changes being made to the original policy
• Effective Date: Specific date when the Endorsement takes effect
• Premium Adjustment: Any changes to premium amounts and payment terms
• Continuation Clause: Statement that all other policy terms remain unchanged
• Authorized Signatures: Both insurer and policyholder signatures with dates
• Stamp Duty: Required Indonesian revenue stamp (meterai) on the document

An Endorsement differs significantly from an Addendum to Contract in both purpose and application within Indonesian legal practice. While both modify existing documents, they serve distinct functions and are used in different contexts.

• Scope of Modification: Endorsements specifically modify insurance policies, while Addendums can change any type of contract or agreement
• Regulatory Oversight: Endorsements must comply with OJK insurance regulations, whereas Addendums follow general contract law principles
• Format Requirements: Endorsements typically use standardized insurance industry formats, while Addendums can be more flexible in structure
• Premium Impact: Endorsements often involve premium adjustments and risk reassessment; Addendums generally don't affect payment terms
• Timing Considerations: Endorsements can be issued throughout a policy period, while Addendums usually take effect at specific contractual milestones