Licences of two insurers revoked over unpaid Covid claims

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From The Nation

The finance minister has revoked the business licences of Southeast Insurance and Thai Insurance after they failed to honour claims of more than THB18 billion from customers for Covid-19, the Office of Insurance Commission (OIC) secretary-general, Suttipol Taweechaikarn, said on Friday.

The revocation, made under the Non-Life Insurance Act with effect from Friday, was aimed at protecting the interest of both companies’ customers, he said.

Suttipol explained that the two insurers had been given time to rectify financial issues stemming from their Covid insurance policies that promised lump-sum payments to those infected by the coronavirus.

However, the shareholders of both insurance companies refused to increase their capital and insisted on discontinuing their business.

Southeast Insurance still owes THB13.5 billion as Covid claims, while Thai Insurance owes THB4.6 billion, according to the OIC secretary-general.

“As this matter threatens to affect the public interest, the OIC suggested that the finance minister make the decision to solve the problem,” Suttipol said on Friday.

Both companies are not financially capable of continuing their insurance business, as they have failed to meet the legal requirements, he explained.

The OIC would get the General Insurance Fund to supervise the liquidation and take care of both companies’ policyholders, according to Suttipol.

Next Monday, the OIC will hold a meeting with 15 insurance firms about their possible takeover of the two insurers’ non-Covid policies and possible refund of the insurance premium, he said, adding that active Covid policies have been transferred to state-owned Dhipaya Insurance.