The Office of Insurance policy Fee (OIC) has ordered two insurance plan companies, Southeast Insurance and Thai Insurance policies, to temporarily suspend the sale of their non-life insurance policies.
Secretary-typical Suttipol Taweechaikarn mentioned on Thursday the OIC board had set circumstances the two companies must comply with.
The companies experienced frequently reported they would comply with Portion 57 of the Insurance policies Act prior to ceasing functions. They experienced proposed that buyers get refunds for insurance plan coverage from Covid-19 infections and terminate insurance policies policies on a voluntarily foundation
Nonetheless, the two companies had only partially carried out what they proposed. Their strategies to transfer insurance policies to other corporations had been not but finished. This triggered quite a few buyers to file issues with Southeast Insurance and Thai Insurance policy more than payment delays, the OIC secretary-standard claimed.
The OIC experienced intently monitored the money position of the two companies and experienced various conferences with reps of the two providers. The commission uncovered their economic positions have been unstable with liabilities in excessive of belongings.
Allocating reserves underneath Area 23 and allocating of property beneath Portion 27/4 failed to satisfy lawful prerequisites. There were being inadequate belongings to include claims.
To avert hurt to clients and the public, the registrar experienced purchased Southeast Coverage and Thai Insurance plan to take the subsequent steps:
– Briefly suspend non-lifestyle insurance plan
– Take motion to assure suitable finance to meet up with obligations and a ample ratio of cash funding as established by regulation inside of 30 times from the day of acquiring the order
– Urgently move forward with the approved sale of property underneath problems set by the registrar. The firms ought to use dollars from the sale of belongings to repay insured folks or those people who are lined less than coverage insurance policies. The companies will have to keep paperwork about the payments for authorities to look at
– Open up places of work people can make contact with each and every working day, in accordance to the OIC’s announcement, and set up adequate workers to cope with statements
– Speed up the examination of insurance coverage claims and keep data of the claims in the registration guide as quickly as possible and inside of the timeframe
– Put together a report on the insurance plan insurance policies as mentioned in the problems
– Make a report of entries in the registration and account publications and maintain insurance policy reserves in accordance to the law
– Speed up insurance policies payments to wounded persons or those who have the ideal under the insurance policies procedures, in the timeframe and
– Report on the development of their do the job until eventually further recognize is made.
Southeast Insurance policy and Thai Insurance are managed by Set-outlined Thai Team Holdings, the insurance coverage arm of Thai Charoen Company Group managed by tycoon Charoen Sirivadhanabhakdi. In January, the two insurance policy corporations sought to stop functions of their non-lifetime divisions, saying they could no for a longer period go over mounting charges linked to Covid-19 promises by policyholders.
Mr Charoen crafted a 516-billion-baht fortune generally from liquor and retailing.