Civil Law Analysis of Life Insurance Agreements in the Context of Contractual Justice for Consumer

Abstract

A life insurance contract is a form of contractual agreement between an insurance
company as a business actor and the insured as a consumer. In practice, the imbalance
in position between the two parties often gives rise to issues of contractual fairness,
particularly when the policy terms and conditions tend to be unilateral and not fully
understood by the consumer. This study aims to analyze life insurance contracts based
on the principles of civil law, particularly the principles of freedom of contract, good
faith, and balance in the contract. The research method used is a normative juridical
approach with a literature review of laws and regulations, legal doctrine, and relevant
court decisions. The results of the analysis indicate that although formally the life
insurance contract meets the requirements for a valid contract according to Article 1320
of the Civil Code, the substance of the contract clauses often contradicts the principle of
fairness, particularly in terms of exclusions of coverage, unilateral cancellation, and
premium provisions. Therefore, it is necessary to enforce the principle of consumer
protection through strict supervision by relevant authorities such as the Financial
Services Authority (OJK), as well as legal interpretation that favors substantial justice
for consumers. This study concludes that updating the contract model and strengthening
regulations are necessary to ensure a balance of rights and obligations between parties
in a life insurance agreement.