THE INCORPORATION OF EXONERATION CLAUSES IN INSURANCE AGREEMENTS: LEGAL CONSIDERATIONS AND IMPLICATIONS

Abstract

This article examines the inclusion of exculpatory clauses in insurance contracts and related legal issues. The inclusion of these clauses, which release insurers from liability, raises serious questions about the power dynamics between insurers and insureds in Indonesia. In order to understand how general and specific laws governing insurance contracts interact, the research examines relevant legal provisions from the Commercial Code, the Civil Code, and the Consumer Protection Law. In particular, the applicability of general civil law provisions in the absence of specific provisions is highlighted through the principle of lex specialis derogate lege generalis. It also discusses the impact of standard contracts on freedom of contract and possible limitations on the rights of the insured, as well as the impact of unilateral insurance policies issued by companies. Given the potential vulnerability of individuals and small businesses, the study emphasizes the need to balance the interests of insurers and insureds. The study suggests that policymakers and attorneys continue to pay close attention to the complex legal issues surrounding exculpatory clauses in order to protect the rights of insureds.