The Office of the Insurance Commission (OIC) ordered Southeast Insurance and Thai Insurance to temporarily suspend the issuance new non-life insurance policies and urged both companies to rectify their financial positions within a specified period.
Suttipol Taweechaikarn, OIC secretary-general, said both companies must obtain funds to raise their capital adequacy ratio to the level prescribed by law within 30 days after receiving the order.
He said their financial positions are unstable, with liabilities exceeding the value of their assets.
Neither company has sufficient liquidity for compensation payments, while their major shareholders have reportedly decided to not provide more financial support to ease the issue. The registrar also found neither company recorded a large amount of Covid-19 claims in the claim registration book.
Moreover, on March 16 the companies told the OIC they were unable to comply with the conditions required to terminate their businesses. Therefore the OIC board has been asked to take actions as it deems appropriate.
Mr Suttipol said the OIC has ordered both companies to sell assets and use the proceeds to pay claims or refund premiums to policyholders and their beneficiaries.
The companies must keep documentary evidence of claim payments and insurance premium refunds for the office to examine.
The OIC also prohibits both companies from accepting new customers and transferring or moving assets, except for claim payments.
The companies are also required to open their offices every day and provide sufficient personnel to process compensation payments and facilitate policyholders.
He said if the two companies are unable to complete the registrar's order within the period specified, or do anything that causes more damage to policyholders or can be considered a violation of law, the OIC shall proceed in accordance with OIC Resolution No.3/2022 and take legal action against the companies.
Meanwhile, the registrar yesterday ordered insurers to provide coverage for both medical expenses and daily compensation for Covid-19 outpatients in hospitels and the home and community isolation scheme. The goal is to reduce disputes and protect the benefits of policyholders.
Outpatients with coverage for only inpatient treatment will receive compensation not exceeding their coverage limit for inpatient treatment, or 12,000 baht, according to the registrar.
Daily compensation or income compensation will be paid to only outpatients that have RT-PCR test results and one of the severe symptoms or risk factors that qualifies them for hospital admission.
Covid-19 patients with risk factors include people aged over 60, patients with chronic obstructive pulmonary disease and other chronic lung diseases, chronic kidney disease, cardiovascular disease and congenital heart disease, cerebrovascular disease, uncontrollable diabetes, obesity, liver cirrhosis, or fewer than 1,000 lymphocyte cells per cubic millimetre. The order is in effect for two months.
