Injustice in private insurance practices in Indonesia often arises due to the imbalance of the position of attachment between the insurance institution and the insured party, such as in unilateral claim rejection or adverse standard clauses. This study aims to analyse the role of insurance guarantees from the state as an alternative to legal protection and justice for consumers. Through a juridical-normative approach and case studies on breaches of agreements committed by private insurers, based on the analysis conducted, it is known that state intervention in the form of an insurance guarantee scheme or Policyholder Protection Scheme (PPS) can provide legal certainty and public confidence in the insurance industry. The study recommends the establishment of a national insurance guarantee institution as a structural solution to the imbalances that occur in the commercial insurance system in Indonesia.
