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Thailand: OIC rejects bid to cancel lump sum Covid payments
The Office of the Insurance Commission (OIC) unanimously ruled against revoking an order that bans insurance companies from cancelling Covid-19 lump sum payments, saying it would be unfair to the policyholders.
The decision to retain registrar order No. 38/2564 comes after overwhelming opposition from a consumer network forum.
The Thai General Insurance Association recently appealed the registrar order, saying it is difficult for them to foot the bills as the Omicron variant spreads across the country.
The OIC hosted a forum to discuss the matter with all stakeholders and invited representatives of a consumer network.
Ularn Jiwcharoen, a representative of the Office of the Consumer Protection Board, said allowing companies to terminate contracts unilaterally would violate Section 5 of the Civil and Commercial Code.
He said insurance companies should have already considered the risks of insuring for Covid-19 before advertising such policies to consumers.
Chris Potranandana, chairman of the Zendai Foundation, presented the results of a survey asking people their opinion on the registrar order.
More than 99.5% of respondents on the foundation’s Facebook page disagreed with cancelling the registrar order.
Some people said they already faced great difficulties and financial burdens because of Covid-19 as some family members became ill and were unable to work.
Others saw the cancellation of Covid-19 insurance as acting in bad faith, and believed its revocation would lead to a large number of court cases.
The OIC has proposed four measures to address the concerns of insurance companies: assistance from the government in the form of low-interest loans to insurers; relaxed regulations regarding compensation; allowing insurance companies to extend the indemnity period; and submitting an offer to refund insurance premiums to the insured for an appropriate amount.
Source: https://www.bangkokpost.com/business/2250275/oic-rejects-bid-to-cancel-lump-sum-covid-payments