Full premium refund option proposed by two ailing insurance companies
The Southeast Insurance and Thai Insurance companies have offered to repay full insurance premium to those customers who have not claimed compensation for COVID-19 infections, before the two firms cease operations.
The option is intended to benefit customers while the companies are still in a stable financial condition, after the Insurance Commission accepted the two companies’ filings to return their operating licenses, according to the two companies, adding that they will cease operations once the Insurance Commission grants them permission to do so.
The insurance coverage will end on the date that the customers apply for the refund, said the two companies, as they promised to refund these customers as quickly as possible.
Insurance coverage against COVID-19 infections for customers who are not interested in this option is still legally binding.
Several insurance companies in Thailand, which introduced so-called “Found, Paid, Done” insurance policies during the COVID-19 pandemic, are facing serious financial problems due to the number claims by policy holders to cover their medical bills.
Miscalculation that the pandemic would end quickly has also been blamed for the problem.
The Southeast Insurance Company has already paid out almost 10 billion baht in compensation to its customers.
The Finance Ministry has already revoked the operating licenses of The One and Asia Insurance companies, after they sustained heavy losses due to COVID-19 claims.