Thai finance minister closes down two insurers over unpaid COVID-19 claims

They experienced their licences revoked following working out of cash to fork out their customers.

Thailand’s Finance Minister has revoked the licences of Southeast Insurance policies and Thai Insurance plan soon after failing to shell out more than TH฿18b ($540m) in COVID-19 insurance coverage payouts, according to the Business office of Insurance policies Commission (OIC).

The revocation of the licence was made underneath the Non-Life Insurance policy Act. Secretary-normal of the OIC Suttipol Taweechaikarn stated this go was to shield the curiosity of the two companies’ consumers.

Before the revocation of their licences, the OIC ordered the two insurers to briefly cease marketing new coverage guidelines and experienced discussions with shareholders from Southeast Insurance policies and Thai Insurance policies. On the other hand, shareholders refused to inject new capital to shell out for the unpaid statements and insisted on discontinuing their company. 

“As this subject threatens to have an effect on the community interest, the OIC prompt that the finance minister make the decision to fix the difficulty,” Suttipol mentioned.

Southeast Insurance policies nevertheless owes TH฿13.5b ($400m) in COVID-19 promises whilst Thai Insurance owes TH฿4.6b ($140m).

Right after the closure, the OIC and the Normal Insurance policies Fund will consider obligation for compensation payments of the prospects of the two companies. Meanwhile, the OIC is established to have a assembly with 15 insurance policy companies on the risk of takeover of the two insurers’ non-COVID-19 guidelines and doable refund of insurance policy rates.

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