OIC gives insurance firms 7 days to submit necessary documents for closure approval
The Office of Insurance Commission (OIC) will give Southeast Insurance Plc and Thai Insurance Plc seven days to submit documents detailing steps taken to manage active policies and compensate their customers and beneficiaries in line with the law.
The two companies have filed motions with the OIC for permission to shut down their insurance business.
“OIC will approve their motion to shut down only after all details required have been submitted,” Adisorn Pipatworphong, OIC’s deputy secretary-general for legal affairs, said on Friday. “In the meantime, both companies shall continue operating as usual, and their customers can file for insurance claims within their legal rights.”
Southeast Insurance and Thai Insurance are both subsidiaries of Thai Group Holdings (TGH), which had announced the termination of its insurance businesses earlier this week due to an unprecedented surge in Covid-19 claims. The group has reportedly paid more than 9.9 billion baht in Covid-19 claims.
According to OIC’s regulations, an insurance company wishing to close its business must inform the OIC of the following before closure can be approved:
• Steps taken to manage or transfer active insurance policies to a new operator. The new operator must provide equal or greater benefits compared to the current policies.
• Steps taken to inform its customers and beneficiaries of the closure and information on how they can exercise their legal rights.
• Steps taken to withdraw or transfer the deposit the company placed with the OIC. The company will be required to provide evidence that it has no outstanding debts or obligations to transfer the deposit.
• Asset and debt management plans for the affected insurance business and other related businesses.
• The period during which regulations 1 to 4 will be implemented.