AJB Bumiputera 1912, or better known as AJBB, is the oldest life insurance company in Indonesia which has been established for approximately 113 years to meet the needs of the ever-growing community. This company is known as the largest and oldest life insurance in Indonesia. The characteristic of AJBB lies in its status as a mutual insurance legal entity, where policyholders act as customers as well as owners or members of the company. All profits and losses are shared fairly for the common good, based on three main principles: mutualism, idealism, and professionalism. AJB Bumiputera 1912's commitment is also reflected in its efforts to provide professional, reliable services, and contribute to increasing public awareness of the importance of life insurance protection that is managed responsibly for the benefit of policyholders [9] .

In an interview with Mr. Fauzi Anwar as the Finance staff of AJB Bumiputera 1912 Semarang City, he stated that AJB Bumiputera 1912 is different from PT Asuransi Umum Bumiputera Muda 1967 (Bumida) because Bumida is a subsidiary of AJB Bumiputera 1912 which is in the form of a PT, different from AJB Bumiputera which is in the form of mutual insurance. AJB Bumiputera 1912 is a mutual insurance where ownership is held by policyholders who are different from Bumida whose ownership is based on a share structure. This difference does not only lie in the form of the business entity but also in the principles of management and corporate responsibility for interests. AJB Bumiputera emphasizes the principle of mutual cooperation between members, while Bumida emphasizes profitability and the interests of shareholders. In addition, there are also differences in the organizational structure.

The establishment of AJB Bumiputera 1912 was built on the basis of trust and mutual cooperation from all company organs. This is a manifestation of article 33 of the 1945 Constitution, namely the economy is structured as a joint venture based on the principle of family. This is based on the principle of the founders' idealism which is not oriented towards profit, but oriented towards the economic welfare of the "bumi-putera" community. AJB Bumiputera 1912 as a mutual insurance has been recognized by the government based on the Decree of the Minister of Finance of the Republic of Indonesia Number 1250/KMK.013/1988 on December 20, 1989 [10] . This basis was then reaffirmed in Law No. 2 of 1992 concerning Insurance Business. The law was then updated in Law No. 40 of 2014 concerning Insurance or the Insurance Law. In addition, on September 23, 2014, Commission XI of the Indonesian House of Representatives has guaranteed in the Insurance Law that AJB Bumiputera 1912 is the only insurance company in Indonesia that has the status of a joint venture or mutual and is based on applicable legal provisions. The latest regulations regarding mutual insurance are regulated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector or often referred to as the PPSK Law which is stated in Chapter VII concerning Joint Business Insurance. Based on Article 53 of the PPSK Law, it states that joint business insurance is insurance that is in the scope of life insurance business with the following characteristics; does not issue shares, does not have paid-up capital, has equity, is owned by members, issues various products that result in the sharing of profits and losses from joint business activities for members, and has assets that are separate from the assets of members. In this mutual legal entity form, the risk is not fully transferred because the policyholder still bears the risk collectively as the "owner" or "business member". So legally, this mutual insurance is legal because there is a legal basis and this business entity model is agreed upon transparently in the articles of association and policy agreement.

Along with the development of the times, AJB Bumiputera 1912 continues to innovate and present various insurance products and services that are tailored to the needs of the community. The variety of insurance products offered makes people increasingly interested in allocating their funds in the form of insurance investments. As one of the companies with a long history in the insurance industry in Indonesia, AJB Bumiputera 1912 provides various life insurance products designed to meet the financial protection needs of individuals and groups. Here are some of the insurance products offered by the company.

1. Individual Life Insurance

a. Scholarship Partners

This product is designed to provide protection for children and support their education costs, from kindergarten to college.

b. Independent Protection Partner

The product is used to plan retirement welfare for farmers, fishermen, ranchers, or other jobs.

2. Group Life Insurance

a. Credit Insurance

This product is intended to provide protection to debtors who have debt obligations to financial institutions.

b. One-time insurance

This product is a type of non-savings insurance that provides full protection against the risk of death, with a limited validity period, and protects against potential losses arising from the death of an employee.

c. Accident Insurance.

This insurance program provides special protection against accident risks for a period of one year.

d. Dream Insurance

This product is designed to provide protection against the risk of death within a certain period of time, up to a maximum of 30 years, and provides funds that grow progressively over time in the form of accumulated monetary value.

3. Bumiputera Financial Institution Pension Fund (DPLK)

a. Prosperous Savings Pension Program (PROPENTAS)

Propentas is a flagship program from DPLK Bumiputera that helps plan the future better, because this program offers significant investment returns, namely between 11% to 12% per year (for Fixed Income investment packages).

Despite offering various attractive products, AJB Bumiputera 1912 has faced serious financial problems since 1997 AJB Bumiputera. This problem also occurred in the period 2012 to 2017 regarding the declining performance of AJB Bumiputera. This condition is based on premium receipts that cannot cover obligations to policyholders. Based on data from the OJK, AJB Bumiputera's total assets as of 2021 reached IDR 9.5 trillion, while its liabilities reached IDR 32.8 trillion. This shows that the amount of liabilities is higher when compared to the company's assets (PUTRI, 2024). The peak was an extraordinary turmoil in 2018 because AJB Bumiputera 1912 experienced the largest default case with total assets of only IDR 10.28 trillion, while its liabilities reached IDR 31 trillion. Therefore, OJK conducted restructuring by taking over the management of AJB Bumiputera 1912 by conducting Restructuring Volume 1 and Restructuring Volume II. This effort apparently still did not show significant efforts in helping to improve the condition of the AJB Bumiputera 1912 company.

On November 19 to December 1, 2022, an Extraordinary Session (SLB) was held which was attended by the Member Representative Body (BPA), Board of Commissioners, and Board of Directors of AJB Bumiputera 1912. One of them was the decision that claim payments would be paid in February 2023 to overcome policyholder losses due to the company not meeting the health level. BPA decided to continue the company's form in the form of a joint venture or mutual in order to save the rights of policyholders. In addition, the meeting also discussed Article 38 paragraph 4 of Bumiputera's Articles of Association which states that in order to continue the establishment of AJB Bumiputera 1912 in the form of a mutual, the remaining losses will be divided pro rata among the members of AJB Bumiputera as determined in the BPA session. Therefore, BPA asked the Board of Commissioners and Board of Directors to prepare the Company's Financial Recovery Plan (RPK) while still considering the legal basis. The first RPK was submitted on December 1, 2022 and has been submitted to the OJK through letter No. 37/DIR/EKST/I/2023 dated January 9, 2023 and OJK approved the no objection plan through letter No. SR.1/D.05/2023 on February 10, 2023. The first stage of this RPK is at the rescue stage with the company focusing on saving the rights of policyholders in the form of delayed claim payments based on the Articles of Association and Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector or PPSK. The policy taken at this stage is the Benefit Reduction Policy. This policy is based on three provisions. First, the Articles of Association of Mutual Life Insurance (AJB) Bumiputera 1912 and is included in the insurance policy issued. Second, Chapter VII concerning Joint Business Insurance in Law 4 of 2023 concerning the Development and Strengthening of the Financial Sector. Third, OJK Regulation Number 1/POJK.05/2018 concerning Financial Health for Insurance Companies. The purpose of this policy is to ensure that the implementation of this benefit reduction is carried out fairly, non-discriminatory, and transparently. This policy is implemented based on the following provisions.

The policies included in this PNM policy are the outstanding claim policy portfolio, except for the portfolio based on the separate management policy (segregation) of the Board of Directors Decree No.SK.35/DIIR/2019 dated December 23, 2019 concerning the Segregation of AJB Bumiputera 1912 Business.

The claim value reduction for policies with outstanding payments is as follows.

Source: Bumiputera.com

Policyholders who have completed the entire claim submission process and have a ready-to-pay status (status 7 in the system), can submit PNM approval to continue with the payment submission, the percentage of which will be adjusted according to the existing table. This claim payment will follow PNM's policy and the availability of company funds. In the PNM policy, policyholders who are prioritized are those whose claims do not exceed IDR 5,000,000 (five million rupiah). If the claim amount exceeds IDR 5,000,000, the remaining claim will be paid in two stages, namely in 2023 and 2024. In an interview with Mr. Fauzi Anwar, there are several stages of submitting claim payments using the PNM policy that can be carried out by policyholders as follows.

Policyholders come to the branch office with the following documents:

1. Insurance policies that have expired;

2. KTP (Resident Identity Card) of the policy holder;

3. Insurance claim submission letter;

4. Policy holder's Account Book;

5. Proof of last premium payment.

Then the insurance party will process and request approval of the insurance claim application files and submit the claim to the regional office or to the regional office or claims department at the head office.

The policyholder's claim status will be processed and a claim will be submitted. After receiving the ready-to-pay status, the policyholder will receive insurance claim payment funds which will be paid through the policyholder's savings account which was stated at the beginning of the submission of the files.

The Benefit Value Reduction Policy (PNM) is one of the solutions based on the PPSK Law. Through this policy, the government is committed to continuing to fulfill its claim payment obligations to policyholders, even though it is accompanied by adjustments in the form of reductions in benefit values, in accordance with the provisions applicable to insurance legal entities in the form of joint ventures. This provision is in line with Article 53 paragraph (2) letter e of the PPSK Law which emphasizes that Joint Ventures in their operations issue insurance products that contain elements of profit sharing and risk of loss among their members. This sharing principle is based on the mutual concept that is voluntarily chosen by members, in line with the basic capital of establishment, so that the risk is shared collectively (Murgai et al., 2022). In addition, Article 55 paragraph (1) letter e stipulates that the articles of association of Joint Ventures must contain provisions regarding the profit sharing mechanism and procedures for charging losses between members. Meanwhile, Article 56 states that each member of the Joint Venture is responsible for bearing all losses arising from business activities, and has the right to obtain profits from these activities, in accordance with applicable regulations.

This policy is also oriented to save the operational sustainability of AJB Bumiputera 1912, so that it can continue to carry out its business activities sustainably in the form of a joint venture entity which is its main characteristic. The implementation of this policy must refer to Article 54 of the PPSK Law, which requires joint venture entities to implement good corporate governance, including in aspects of investment management, risk management, and internal control. These governance principles include prudence, transparency, accountability, responsibility, professionalism, and fairness. Therefore, in determining and managing premiums paid by policyholders, the company must ensure that the risks and benefits obtained can be calculated accurately, in order to prevent potential failure to fulfill its obligations to policyholders or insured parties.

The main objective of implementing the PNM policy is to ensure that the reduction in benefit value is carried out fairly, transparently, and without discrimination. If AJB Bumiputera fails to implement this provision, the objectives to be achieved may be disrupted due to weak management governance. This condition risks causing delays in the claim fulfillment process, which in the end can harm and endanger the interests of policyholders [11] . In 2024, it was recorded that 86,558 policyholders agreed to this policy with a total claim value of IDR 267.17 billion. Policyholders who have received claims after the PNM Policy are 70,636 with a claim value of IDR 211.4 billion. So there are still 15,922 policies that have not been paid with a total claim value of IDR 55.77 billion. In the results of interviews with three AJB Bumiputera 1912 policyholders, some of the policyholders have agreed to this policy, but until now have not received claim payments.

In the interview with Mrs. Sumaiti as the policyholder of AJB Bumiputera, she explained that she had agreed to the PNM policy in 2021. She was promised by the agent that if she agreed to this policy, the insurance money would be disbursed immediately. Her total policy claim was previously IDR 21,000,000, cut to IDR 14,000,000. In addition, the interview with Mr. Pangestu Wicaksono also agreed to this policy in 2020 with a claim reduction of 50%, but until now he has not received the claim payment.

Legal protection for policyholders is also a major concern in the PPSK Law, especially if in the implementation of the Benefit Reduction (PNM) policy there is a violation of the provisions of the law or its implementing regulations. This is expressly regulated in Article 279, which states that the Financial Services Authority (OJK) has the authority to impose administrative sanctions on any party that violates the PPSK Law and its derivative regulations. Furthermore, this provision states that parties who violate various important articles, such as Article 54 paragraphs (1) to (5) and several other articles related to the governance and implementation of insurance business activities, will be subject to administrative sanctions. The forms of sanctions that can be given by the OJK vary, ranging from written warnings, reduction in the company's health level, restrictions or prohibitions on some or all business activities, to prohibitions on marketing insurance products for certain lines. In addition, individuals who violate can also be prohibited from serving as shareholders, controllers, members of the board of directors, board of commissioners, or other strategic positions in legal entities in the form of cooperatives or Joint Ventures. Not only that, sanctions in the form of administrative fines or revocation of business licenses can also be imposed. All procedures and methods for imposing these sanctions are further regulated in accordance with the provisions applicable in laws and regulations in the insurance sector, in order to ensure that the law enforcement process runs transparently and fairly.

The Benefit Reduction (PNM) Policy by AJB Bumiputera 1912 has had quite serious impacts on policyholders, both in terms of fairness and legal compliance. From a fairness perspective, many policyholders feel disadvantaged because the benefits promised at the beginning of the contract have been unilaterally reduced. This has caused dissatisfaction because an insurance policy is a form of agreement that should bind both parties fairly. On the one hand, the company argues that this step was taken to save the sustainability of the business and protect the interests of all policyholders collectively. However, on the other hand, individuals who have been disciplined in paying full premiums must bear the risk of company management errors. This gives rise to the perception that the losses are borne by the policyholders, not the managers or policyholders. From a legal compliance perspective, the PNM policy is actually based on regulations because it is implemented by the Financial Services Authority (OJK) in order to save insurance companies experiencing a liquidity crisis based on the PPSK Law. The process must be approved by the regulator, and socialized to policyholders, but in practice legal issues still arise, especially related to consumer rights. Some policyholders feel that the decision-making process does not involve them directly, resulting in lawsuits or complaints to the courts or to consumer protection agencies. Normatively, this step is legal, but sociologically, it still raises tensions between the principle of consumer protection and efforts to save the joint business entity.

If we examine the effectiveness of the Benefit Reduction (PNM) policy in overcoming the company's financial crisis, it can be partial. In terms of effectiveness, PNM is indeed able to provide breathing space for companies that are experiencing financial deficits. Reducing the obligation to pay policy benefits can minimize liquidity pressure and adjust income to continue to be able to run basic operations. In this context, PNM can be called an emergency solution to avoid total bankruptcy which is a greater risk for all policyholders, but if we examine it more deeply, the PNM Policy is not a solution that solves the root of the problem. The crisis at AJB Bumiputera 1912 was caused by a combination of factors such as; investment management errors, large past liability burdens, and weak internal governance. If the PNM Policy is only implemented without being accompanied by management reform, capital strengthening, and improving corporate governance, then the effect will only be temporary. Even in the long term, this can reduce public trust in the company and the insurance sector as a whole. In addition, excessive cuts in benefit values can trigger lawsuits and resistance from customers. This condition will create new problems for the company. Therefore, objectively PNM is effective as an emergency solution, but is not strong enough to overcome the crisis as a whole if not accompanied by a more comprehensive restructuring strategy. The need for good governance in accordance with the provisions of the PPSK Law so that this PNM policy can be the best solution for policyholders or the company [12] .

If examined with Satjipto Rahardjo's protection theory which aims to realize a sense of justice, certainty, and benefit for the community [13] . In the implementation of the implementation of the Benefit Value Reduction by AJB Bumiputer 1912, legal protection is stated in Article 54 and Article 279 of the PPSK Law. In Article 54 of AJB Bumiputera 1912 in making policies, it is mandatory to implement good corporate governance and which gives authority to the Financial Services Authority (OJK) to impose sanctions for violations. Normatively, the regulation is adequate because it regulates the supervision mechanism, the imposition of administrative sanctions, and the protection of policyholder rights against potential deviations in the implementation of PNM policies. This condition is in contrast to the implementation in the field, this legal protection has not been fully achieved optimally. This is reflected in the ongoing complaints from policyholders regarding delays in claim disbursements, unclear information regarding the reduction of benefit values, and weak transparency in the PNM implementation process. This condition shows that the principles of justice and benefit in the theory of legal protection have not been fully realized, even though in terms of formal legal frameworks, the legal framework is already available. Therefore, the implementation of this PNM Policy must be carried out with transparency, management accountability, and speed of claim settlement to policyholders.

Normatively, legal protection for policyholders is clearly stated in the regulation, especially through the authority of the OJK in supervising the implementation of this policy in imposing sanctions for any violations, but when viewed from its implementation, the legal protection is not yet fully optimal. There are still problems at the implementation level, such as delays in claim disbursement, lack of transparency, and weak management accountability that has the potential to harm policyholders. The commitment of all parties, both regulators and AJB Bumiputera management, is an important key in ensuring that policyholders' rights are protected in a real way, not only at the normative level, but also in fair and transparent practices.

In addition, the PPSK Law provides another mandate to the Deposit Insurance Corporation (LPS) to provide legal protection for policyholders. The Deposit Insurance Corporation currently does not only apply to banking customers, but this institution is also tasked with guaranteeing protection for insurance policyholders if the insurance company fails to fulfill its obligations [14] .

Insurance is an economic institution that functions to minimize the risk received by the insured by paying claims and managing a large number of objects in a system, so that the potential for overall losses can be predicted within controllable limits [15] . Claims are an obligation to pay insurance money from the insurance company to the insured. Payment of these claims can vary depending on the amount of the agreed premium [16] .

AJB Bumiputera 1912 places the highest power in the hands of policyholders who, in addition to being customers, also act as owners of the company. The rights and obligations of members are regulated in the Articles of Association, where the Member Representative Body (BPA) is the highest institution that represents the aspirations of members and also determines the direction of company policy. This BPA has the right to a reversionary bonus and members without the right to a reversionary bonus. The right to a reversionary bonus is the right of members who receive a share of profits or dividends at the end of the year. The BPA, which is elected by members with certain criteria, also carries out a supervisory function through the Board of Commissioners which oversees the performance of the Board of Directors. The Board of Commissioners has the authority to examine assets, documents, and request information from the Board of Directors regarding the running of the company. In addition, the Board of Directors, consisting of three to five people, is fully responsible for the company's operations and represents AJB Bumiputera both inside and outside the court. The Board of Directors also bears responsibility for company losses if proven to have committed management errors that deviate from the provisions of the Articles of Association. This mechanism shows that the management of AJB Bumiputera is carried out with a structure that prioritizes member participation, inherent supervision, and firm responsibility at every level of management.

AJB Bumiputera 1912 during the financial health recovery period provides a form of accountability by continuing to convey and provide information according to references from the head office to policyholders or insured. These references are the basis for service offices or branch offices in each region spread across various regions, basically functioning as a follow-up from the head office for policies to be implemented. This policy is centered at the head office and branch offices as executors continue to provide responsibility by conveying various branch offices as executors in the field still have the responsibility to convey the decision to policyholders, by ensuring that all information provided is in accordance with the company's official provisions.

In an interview with Mr. Fauzi Anwar, S.Sos, he explained a number of steps that have been taken by AJB Bumiputera 1912 Semarang branch in dealing with the company's condition which until now has not been able to fulfill all of its obligations in the last few years. The company continues to strive to maintain good communication with policyholders, with the main focus currently being to provide the best service to customers whose claims are still pending. In addition, the company also routinely provides information that the recovery process being carried out by the central management together with the OJK is still ongoing. Management is committed to resolving the rights of policyholders in stages in accordance with applicable regulations. He also added that there is a special policy for policyholders who agree to the implementation of the Benefit Value Reduction (PNM), the agreement of which is stated in a statement letter and signed by the policyholder, so that the payment process will be carried out according to the availability of funds from the head office. This policy refers to the Directors' Letter Number 191/DIR/EKST/II/2023 which is also the basis for information to policyholders. In addition, he explained that there are other alternatives to overcome the delay in claim payments, namely through a request for the disbursement of excess guarantee funds that have been approved by the OJK, the release of shares owned on the Indonesia Stock Exchange, and the optimization of assets in the form of land and buildings listed in the company's Financial Recovery Plan (RPK). The following are some of the ways that AJB Bumiputera 1912 has carried out in order to recover in order to be responsible for the financial health it is currently experiencing.

1. Office reorganization

The office reorganization was carried out by merging several active offices of AJB Bumiputera 1912 in Indonesia, which originally reached 341 offices, into 100 active offices. This step was taken with the aim of increasing cost efficiency and office operations.

2. Asset Conversion

Asset Conversion is carried out through the sale of company assets at market prices, where the proceeds will be used to pay 50% of customer claims and the remainder to support the company's operational activities.

3. Organizational Rationalization

This organizational rationalization was carried out by terminating the employment of 624 employees, as a form of reducing fixed cost burdens.

4. Premium Acceleration

Premium acceleration is carried out by prioritizing claim payments to customers as the main priority in maintaining public trust. In the policy of reducing the value of policyholder benefits with a claim amount of Rp 5,000,000.00 (five million rupiah) will be paid at once in 1 (one) year.

AJB Bumiputera 1912 is always committed to remain responsible for the problems experienced by policyholders. This statement indicates that the company is facing challenges, but there is still good faith and constitutional awareness from the management to complete obligations to policyholders. The following are the obstacles or barriers experienced by the company based on his presentation.

Limited funds available are an obstacle to paying all claims in full.

Company operations are disrupted due to minimal available funds, thus affecting customer service.

Incomplete customer data slows down the verification and claim settlement process, which should be done more quickly.

He also explained that in conveying information related to the Benefit Value Decrease Policy, AJB Bumiputera 1912 Semarang City carried out several communication methods. The following are the methods used by the company to provide information to its customers.

By Mail

In this method, the company will send an official letter to policyholders regarding the benefit reduction policy.

Marketing Agent

In this method, the company will give an order to the marketing agent to contact the customer regarding the delivery of information regarding the benefit reduction policy.

Through Social Media

In this method, the company will provide information regarding the benefit reduction policy through the official social media of AJB Bumiputera 1912.

As a form of responsibility, AJB Bumiputera 1912 has made various efforts to maintain the continuity of the company amidst the limitations. The policy of reducing the value of benefits as a form of solution that benefits policyholders and can also continue the form of the company as a form of joint business entity in accordance with the initial establishment. In this policy of reducing the value of benefits, AJB Bumiputera will continue to pay claims of policyholders with a queuing system and waiting for the availability of funds. The existence of efforts to reorganize the office, asset convention, organizational rationalization, and premium acceleration are forms of responsibility of AJB Bumiputera 1912 to continue to pay customer claims.

Interview results with Mrs. Sumaiti, as a policyholder of AJB Bumiputera 1912 with an education policy type included in the Planned Scholarship. She has been a policyholder since 2004 and the policy period ends in 2021, so her total membership period is 17 years. Initially, the first claim payments in 2015 and 2019 went smoothly, but for the following years there were obstacles. During her time as a policyholder, she learned that AJB Bumiputera 1912 was a joint venture business entity. In an effort to obtain her rights, she agreed to the Benefit Value Reduction policy set by AJB Bumiputera 1912, namely receiving insurance money with a deduction after PNM to IDR 14,000,000. Until now, she has not had any good faith from the company to pay the claims that have been submitted. As a policyholder, she understands the difficult situation of the company but she also needs the insurance money for her child's education. He has agreed to the policy and has provided his account number, but there has been no disbursement of the insurance money to date.

The researcher also obtained the results of an interview with Mrs. Krisma, as a policyholder of AJB Bumiputera 1912 with an education policy type. She has been a policyholder since 1995 and the policy period ends in 2023, so her total membership period is 28 years. In 2025, she has not received the promised insurance money of Rp. 800,000 and Rp. 1,500,000. During her time as a policyholder, she learned that AJB Bumiputera 1912 is a joint venture business entity. According to her, with the principle of joint venture insurance that applies profits and losses are borne jointly by the company and the policyholder, it is unfair if the policyholder bears 100% of the loss. She did not know that AJB Bumiputera 1912 implemented a Benefit Reduction Policy, the company never gave her any information regarding this policy. She hopes to find a way to resolve this case with all parties benefiting.

Another result of the researcher conducted an interview with Mr. Pangestu Wicaksono as a policyholder of AJB Bumiputera 1912 with an education policy type. He has been a policyholder since 2008 and the policy validity period ends in 2020, so his total membership period is 17 years. During his time as a policyholder, he did not know that AJB Bumiputera 1912 was a joint venture business entity. In an effort to obtain his rights, he agreed to the Benefit Value Reduction policy set by AJB Bumiputera 1912, namely receiving insurance money with a 50% discount but until now, there has been no good faith from the company to pay the claim submitted.

Based on the perception of AJB Bumiputera 1912 policyholders, they feel that this policy is not beneficial. This policy results in a conflict between the principles of insurance and the implementation of AJB Bumiputera 1912 company policies. This policy is contrary to the basic principles in Article 246 of the Commercial Code. This article emphasizes that insurance is an agreement that aims to compensate for losses, where the amount of compensation must be commensurate with the losses experienced by the insured party. The policy of reducing the value of benefits implemented by AJB Bumiputera 1912 has caused losses for policyholders who have so far fulfilled their obligations to pay premiums in the hope of obtaining legal protection according to the agreement in the policy. Reducing the value without transparent approval not only damages customer trust but also tarnishes the company's image in the eyes of the public. A number of customers, such as those conveyed by Mrs. Sumaiti and Mr. Pangestu Wicaksono, expressed their disappointment over the delay in the disbursement of claims that had been submitted four years ago without clear certainty. Although they have submitted the necessary documents, until now the disbursement has not been realized, including the promise of partial payment of claims that have also not been fulfilled. The regional branch acknowledged its limitations in providing definitive information because all decisions depend on the head office and the availability of funds. Customers understand the difficulties faced by the company, but still demand the right to fast, clear, and promised service. Therefore, concrete steps are needed in the form of improving communication, transparency, and efficiency of the claim disbursement process in order to restore trust and maintain the integrity of the relationship between the company and customers.

When examined through the theory of legal certainty by Sudikno Mertokusumo, legal certainty is a form of protection for the justiciable against arbitrary actions [17] . This means that a person has the right to obtain what is expected under certain conditions. Sudikno also emphasized that legal certainty is the hope of society, because with this certainty, order in community life can be realized. The law plays a role in creating legal certainty in order to achieve social order. The implementation of the Benefit Value Reduction (PNM) policy by AJB Bumiputera 1912 reflects the existence of legal uncertainty regarding the basic principles of law that demand clarity, consistency, and protection of the rights of legal subjects, in this case policyholders. The theory of legal certainty emphasizes that every policy taken must be based on applicable regulations, socialized transparently, and must not harm parties who have complied with their obligations according to the agreement. In practice, policyholders as members and owners of the company have fulfilled their premium payment obligations in the hope of obtaining benefits according to what is promised in the policy. After the agreement on the PNM policy promised in 2023 and 2024 but there is still no certainty of claim payments in that year until now. This has caused a loss of public distrust of insurance companies. This condition shows that AJB Bumiputera 1912 has not been able to carry out its legal responsibilities in full, because in addition to delaying the disbursement of claims, the company also reduces the rights of policyholders. Therefore, from the perspective of the theory of legal certainty, this action is contrary to the principle of guaranteeing rights that should be maintained by insurance companies as financial service business actors subject to state regulations.