Legal Literacy - Insurance is fundamentally a legal instrument for transferring risk in modern economic life. Therefore, the relationship between the insurer and the insured cannot be seen merely as an ordinary business transaction, but as a contractual relationship involving trust, certainty, and legal protection. It is at this point that the debate regarding the cancellation of insurance coverage becomes important, especially after the issuance of Constitutional Court Decision Number 83/PUU-XXII/2024.

Normatively, Article 246 of the Commercial Code (KUHD) places insurance as an agreement where the insurer, after receiving a premium, undertakes to provide compensation to the insured for losses arising from an uncertain event. This understanding is then reinforced in Article 1 number 1 of Law Number 40 of 2014 concerning Insurance which places insurance as an agreement between the insurance company and the policyholder. Meanwhile, what is defined in Article 1 number 22 of the Insurance Law is Policyholder, not the policy. As for the policy itself, in the Commercial Code regime, it is known as a written deed of insurance. Thus, the policy has a position as a contractual document, not a legal subject.

As an agreement, insurance is subject to the law of obligations, including the conditions for the validity of an agreement in Article 1320 of the Civil Code and the obligation to…