Legal Aspects of Implementation of Insurance Agreements Based on Insurance Principles in Cyber Insurance

Abstract

Cyber insurance was born along with the development of information technology. The problem discussed is the implementation of insurance agreements in cyber insurance carried out based on insurance principles which include the principles of utmost good faith, indemnity, and subrogation. Implementation of the principle of utmost good faith is not solely borne by the Insured but is also the responsibility of the Insurer. Implementing the principle of indemnity in insurance agreements when a risk occurs that causes losses in cyber insurance can encounter obstacles when submitting a claim. Inhibiting factors include the difficulty of determining the actual value of losses accurately. Meanwhile, the factor that hinders the implementation of subrogation is that the whereabouts of third parties who cause losses are often difficult to know. Even if it is known but is outside Indonesian jurisdiction, then this will create difficulties for the implementation of subrogation rights. The method used is normative juridical to assess the extent to which the implementation of insurance agreements is based on insurance principles in cyber insurance and inhibiting factors. The research results show that the implementation of insurance agreements based on insurance principles in cyber insurance experiences obstacles, namely the difficulty of implementing the principles of indemnity and subrogation in insurance agreements.