An inquiry into COVID-19 insurance claims owed to some 4,000 policyholders has been made in the lower house of Parliament. Pheu Thai Party MPs have asked the governing coalition about the payments due to people who bought insurance from four defunct insurers. The Ministry of Finance said COVID insurance policyholders will receive their payments within this year.
According to Finance Minister Arkhom Termpittayapaisith, COVID outbreaks deprived four insurance companies of liquidity, prompting their licenses to be revoked. About 3 billion baht of the insurers’ debts were transferred to the General Insurance Fund, with 510 million baht owed to 6,912 persons insured by two of the firms having already been paid. Money owed to policyholders by the two remaining firms will be paid out starting next month and all policyholders are expected to receive money owed to them within this year.
Minister Arkhom said insurers are required to deliver 0.25% of insurance premiums to the General Insurance Fund. As this amount is insufficient for ensuring the fund’s liquidity, the Cabinet will be asked to approve raising the contribution rate to 0.5% per year. The finance minister noted that this would still not be adequate for the fund and more funding sources are being sought. He also said a borrowing might be made to pay off debts transferred from defunct insurers. Some portions of debts might also be transferred to other types of insurance. (NNT)
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