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

They had their licences revoked immediately after running out of income to shell out their clients.

Thailand’s Finance Minister has revoked the licences of Southeast Insurance and Thai Insurance plan immediately after failing to pay back around TH฿18b ($540m) in COVID-19 coverage payouts, according to the Office environment of Coverage Fee (OIC).

The revocation of the licence was created underneath the Non-Life Coverage Act. Secretary-basic of the OIC Suttipol Taweechaikarn explained this move was to guard the curiosity of both of those companies’ prospects.

In advance of the revocation of their licences, the OIC purchased the two insurers to temporarily stop providing new insurance policies and had conversations with shareholders from Southeast Coverage and Thai Insurance. Nevertheless, shareholders refused to inject new cash to spend for the unpaid promises and insisted on discontinuing their enterprise. 

“As this issue threatens to impact the public interest, the OIC recommended that the finance minister make the conclusion to clear up the dilemma,” Suttipol reported.

Southeast Insurance policies still owes TH฿13.5b ($400m) in COVID-19 claims although Thai Coverage owes TH฿4.6b ($140m).

Soon after the closure, the OIC and the Common Coverage Fund will choose responsibility for compensation payments of the clients of the two firms. Meanwhile, the OIC is established to have a meeting with 15 insurance policies corporations on the probability of takeover of the two insurers’ non-COVID-19 policies and doable refund of insurance rates.

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