Cabinet approves THB15.5 billion disaster insurance plan for 30 million homes

Thailand’s Cabinet has approved THB15.5 billion for a national disaster insurance scheme to purchase insurance policies for people across the country.

The scheme aims to shift the government’s approach to natural disaster risk from providing relief after an event to managing risks in advance through insurance. The objective is to make compensation and assistance faster, more widely accessible and more efficient.

The Ministry of Interior, through the Department of Disaster Prevention and Mitigation (DDPM), will implement the scheme in cooperation with the Office of Insurance Commission (OIC) and the Thai General Insurance Association (TGIA). Cover will run from October 1, 2026 to October 1, 2027.

How the THB15.5 billion will be spent

The approved budget is divided into two main components, covering residential property damage and deaths.

A total of THB15 billion will fund premiums for group residential insurance policies covering damage to people’s homes and residential structures. A further THB500 million is allocated to group accident insurance policies providing cover for deaths caused by disasters.

Three natural hazards covered

The scheme covers three major natural hazards: floods, windstorms and earthquakes. Residential cover will extend to approximately 30 million homes, based on housing statistics from the Bureau of Registration Administration, Department of Provincial Administration, as of September 10, 2026.

For flood damage, the maximum payout is THB100,000 per home per incident. This comprises an initial payment of THB10,000 and additional compensation of up to THB90,000.

For windstorm and earthquake damage, the maximum payout is also THB100,000 per home per incident, comprising an initial payment of THB5,000 and additional compensation of up to THB95,000.

For deaths caused by floods, windstorms or earthquakes, the benefit is THB2 million per person.

Eligibility and policy arrangements

DDPM has set out the policy structure and eligibility requirements to ensure assistance and compensation reach the appropriate recipients.

Government agencies, or bodies designated by the government, will hold the policies and administer them jointly with the insurance companies. Insurers must be non-life insurance companies that meet the selection standards set by the OIC and TGIA.

Residential cover will apply to the legal owners of homes recognised under civil registration law. It will also extend to occupants of accommodation that is not recognised as a home under that law, provided a legally authorised official certifies that the structure is regularly inhabited.

Death cover will apply to Thai nationals with a 13-digit national identification number.

Moving from post-disaster relief to advance planning

DDPM director-general Theerapat Kachamat described the national disaster insurance scheme as a major reform of the government’s approach to risk management.

He explained that assistance for people affected by natural disasters had traditionally been provided after an event, leaving the government with unpredictable budget commitments from year to year and potentially delaying the allocation of relief funds.

Using insurance would allow the government to assess and plan for risks in advance and transfer some of those risks to the insurance sector, he said. This would help affected people receive assistance and compensation more quickly, with payments delivered more accurately and systematically.

The Cabinet has also assigned DDPM responsibility for receiving the budget and disbursing premium payments to insurers in the proportions determined by the OIC and TGIA. The department must comply strictly with relevant laws and regulations, with the aim of ensuring transparent, comprehensive assistance that delivers the greatest benefit to the country.