After an overwhelming number of Covid-19-related claims forced two of Thailand’s insurers to owe billions of baht in compensation, Thailand’s finance minister revoked the providers’ business licenses. The decision was made effective yesterday.
One provider, Southeast Insurance, owes 13 billion baht in compensation, while the other, Thai Insurance, owes 4.6 billion baht. The secretary general of the Office of the Insurance Commission said that the insurance reserves and the capitalization ratio of the two companies are below the legal minimum. He said companies now had more liabilities than assets and had unreasonably delayed compensation payments to their customers. He also said they did not record compensation payments as required.
The Secretary General added that the OIC tried to solve the problems of the companies, but failed to do so. He said the revocation of licenses would only affect holders of COVID-19 policies, while other life and non-life insurance policies were transferred to other providers.
The Secretary General said that the OIC and the General Insurance Fund will be responsible for paying compensation for outstanding claims for both companies. The OIC has set up counseling centers to receive complaints and facilitate debt repayment requests.
The OCI will allow customers of both companies to bring documentary evidence to the commission and file a claim. After receiving an application, the OCI will pay claims using the reserves of the General Insurance Fund, according to the regulator.
THE SOURCE: Thai PBS World | Bangkok Post