This research aims to determine and examine how the legal protection for
insurance customers against insurance companies that experience insurance policy
defaults, as well as to examine the urgency of establishing an insurance policy
insurance agency that functions to protect each insurance customer fund, such as in
the banking world which has a guarantor institution, namely deposit insurance
agency (LPS). The instrument is a type of normative research using a statutory
approach. The data source is secondary data consisting of primary legal materials,
secondary legal materials and tertiary legal materials, which are analyzed using the
legal analysis method. The data collection method is done by analyzing the literature
study. Deductive thinking process is used in drawing conclusions. The analysis in
examining the research results uses legal political theory as the basis for conducting
studies on the guarantee institution. Regarding the results of the research and
analysis conducted, it was found that every financial service industry that absorbs
funds from the public must have a guarantor institution to protect every customer.
The government, as the holder of the competent power, must immediately establish a
policy guarantor institution in the insurance industry in Indonesia.