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Thai Insurance Companies Pay ฿60 Billion in Covid-19 Benefits, Total Seen Hitting ฿100 Billion

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Insurance companies paid out nearly 60 billion baht on Covid-19 insurance policies through the end of March with the total payouts expected to reach 100 billion in June.

The Office of the Insurance Commission reported Friday that insurance companies paid a total 52 billion baht in lump-sum payments to Covid-19 insurance policyholders as of March 15. The number increased to nearly 60 billion baht at the end of the month due to the spike in coronavirus omicron-variant infections following the resumption of most economic activities in the country.

According to the OIC, the accumulated value of claims had been continuously increasing from 43.3 billion baht at the beginning of the year to 47.5 billion in February and 52 billion on March 15.

Anon Vangvasu, president of the Thai General Insurance Association, stated that he expects the total value to reach 70 billion to 80 billion baht by the end of April and reach 100 billion by the end of June. He noted that all Covid-19 insurance policies with lump-sum payments in the system will expire at the end of that month.

The TGIA president cautioned that any future spike in Covid-19 cases could potentially affect the overall financial status of more insurance companies in the country, pointing to the fact that four insurance units have so far been forced to shut down due to their lack of sufficient capital reserves to payout claims filed by their clients.