The Office of the Insurance Commission (OIC) prohibited insurance firms from early terminating their COVID-19 insurance policies which offered lump sum compensation because that would affect insured people.
OIC secretary-general Suthipol Thaweechaikarn said he discussed issues concerning lump sum COVID-19 compensation with the president of the Thai General Insurance Association. The discussion followed the association’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 COVID-19 insurance policies because it would affect insured people and the whole insurance business.
Insurance firms could propose their clients switch to other kind of COVID-19 insurance policies on a voluntary basis. They were prohibited from forcing their clients to change the policies, Mr. Suthipol said.
He added that the OIC had measures to help the insurance companies that had problems with their lump sum payment policies. (TNA)