Basis And Implications of the Constitutional Court Decision Number 83/PUU-XXII/2024 Regarding Unilateral Cancellation of Insurance Agreements by Insurance Companies

Abstract

The Constitutional Court Decision No. 83/PUU-XXII/2024 declares Article 251 of the Indonesian Commercial Code conditionally unconstitutional. Consequently, annulment of contracts, particularly insurance agreements, is unconstitutional unless based on mutual consent between the insurer and the insured, or by court ruling. The Court emphasized that Article 251 contradicts principles of justice, legal certainty, and consumer protection guaranteed by the 1945 Constitution. This decision reinforces that annulment of insurance contracts cannot be imposed unilaterally but must reflect a fair balance of rights, thus strengthening constitutional protection for consumers in contractual relations.