Home Business

Thai Insurers Blocked from Terminating Covid-19 Policies Early

The Thailand Insurance Commission

The Office of the Insurance Commission prohibited insurance firms from prematurely terminating their Covid-19 insurance policies that offered lump-sum compensation.

OIC Secretary-General Suthipol Thaweechaikarn said he discussed issues concerning lump-sum compensation with the president of the Thai General Insurance Association.

The discussion followed the group’s report that insurance firms had paid 30 billion baht worth of lump-sum compensation to their customers who had been infected with the disease and the cost was growing.

He said the OIC rejected the association’s request for permission for the early termination of lump-sum policies because it would affect insured people and the entire insurance business.

Insurance firms could propose their clients switch to other kind of Covid-19 policies on a voluntary basis. They were prohibited from forcing their clients to change, however, Suthipol said.

He added that the OIC had measures to help the insurance companies that had problems with their lump-sum payment policies.