Govt weighs Bt50-bn insurance pool

The government is working out a plan to assist small and medium-sized enterprises (SMEs) and households suffering from a sharp rise in insurance costs, he said. Unlike large firms, they may not be able to pay insurance premiums for flood coverage
“In principle, we still want private insurers to assume the risk, but the government will share some of it,” said Areepong, who is also the permanent secretary for Finance. Bangkok Insurance chairman and president Chai Sophonpanich believed the government would finalise the insurance fund pool in the next three months.

He said the pool was a good way to cover the massive costs of the disaster while helping insurers to continue underwriting all customers’ risks.

Rice-pledge estimate revised downward
Farmers are likely to pledge 15 million to 17 million tonnes of rice, down significantly from an initial projection of 25 million tonnes, due largely to the flooding, said Luck Wajananawat, president of the Bank for Agriculture and Agricultural Co-operatives (BAAC).

The bank has given Bt45 billion to farmers since the scheme was implemented in November. The BAAC projects it will spend about Bt260 billion for the rice, down from Bt400 billion estimated previously, he said.

As fewer farmers than expected have joined the scheme, which is due to end at the end of February, the government is considering extending it to wait for farmers affected by flooding to grow new crops, he said.

Farmers in the Central region will benefit from this change, he said. – The Nation