Syn Mun Kong insurance revokes its Covid-19 insurance due to worsening infections in Thailand, encountering public backlash and insurance commission disapproval

[webfact]

 

By Nop Meechukhun

 

Bangkok – Thailand’s insurance company, Syn Mun Kong Insurance, this morning, July 16th, announced the sudden cancelation of its Covid-19 insurance policies following the worsening Covid-19 situation in Thailand. However, the Office of Insurance Commission immediately banned the practice by this afternoon.

 

According to their statement, the decision had been made as the outbreak of the Covid-19 Coronavirus in Thailand continues to escalate and the number of new daily infections has significantly increased at a high rate and put pressure on the public health system, causing the risk and the situation in the near future to become unforecastable.

 

Syn Mun Kong Insurance, therefore, has to effectively manage the risk effectively and needs to cancel the “Covid 2 in 1” insurance policy and end its entire coverage 30 days after the insurers received the official letter notifying the change.

 

Full story: https://thepattayanews.com/2021/07/17/syn-mun-kong-insurance-revokes-its-covid-19-insurance-due-to-worsening-infections-in-thailand-encountering-public-backlash-and-insurance-commission-disapproval/

 

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[pegman]

If anyone here has shares in this or any other Thai insurance company SELL, SELL, SELL!!!

[Credo]

Aren't some expat/tourists required to have Covid insurance?

 

[BritManToo]

Full refund for all policy holders?

[Laughing Gravy]

1 hour ago, webfact said:

According to their statement, the decision had been made as the outbreak of the Covid-19 Coronavirus in Thailand continues to escalate and the number of new daily infections has significantly increased at a high rate and put pressure on the public health system, causing the risk and the situation in the near future to become unforecastable.

When the insurers start saying this you know the country is a dire state. I wonder how the government will fudge this news.

[ikke1959]

The first insurance company that wants to pay has to be started. Nowhere in the world you find a insurance that wants to pay.

[irishman25]

10 minutes ago, ikke1959 said:

The first insurance company that wants to pay has to be started. Nowhere in the world you find a insurance that wants to pay.

they want the money like all scams but not pay out for any Claim is it what health insurance is for 

[Albert Zweistein]

8 minutes ago, ikke1959 said:

The first insurance company that wants to pay has to be started. Nowhere in the world you find a insurance that wants to pay.

Two weeks ago my car which I bought  2,5 years ago for € 29,750 was stolen. The other day my insurance informed me that 30 days after the date of the theft they wil pay me € 27,280 plus they provided me a car from that date for a period of 30 days plus a taxi to drop me at the place where I had to collect the car. Without any hassle.

So allow me to say that your statement is BS.

[colinneil]

20 minutes ago, ikke1959 said:

The first insurance company that wants to pay has to be started. Nowhere in the world you find a insurance that wants to pay.

Disagree with your post, we got our home insured 4 years ago with M.S.I.G.

4 days after the policy started there was a serious storm here.

Contacted insurance, they asked for photos of damage, which i sent, they gave me the ok to get repairs done.

Nobody came to check, after work done, sent them the bill, 2 weeks later cheque arrived in the post.

So i can say you are not correct with your comment.

[hotandsticky]

33 minutes ago, colinneil said:

Disagree with your post, we got our home insured 4 years ago with M.S.I.G.

4 days after the policy started there was a serious storm here.

Contacted insurance, they asked for photos of damage, which i sent, they gave me the ok to get repairs done.

Nobody came to check, after work done, sent them the bill, 2 weeks later cheque arrived in the post.

So i can say you are not correct with your comment.

 

 

I have a similar experience. 

 

Riding a motorbike in Pattaya a Thai motorcyclist turned into me at a junction. No damage, just a few harsh words from me and off we went. When I looked down blood was dripping from a cut on my arm......needed stitches at Pattaya Memorial. Never considered insurance.

 

A couple of weeks later I was having the dressing changed at a local clinic and the guy said I could claim on the government insurance - I just needed a police report from Soi 9. I that would be a waste of time but my better half said that I had nothing to lose. Plod could not have been more helpful and I took the report, plus hospital receipts,  to the insurance offices on Sukhumvit Road. After half an hour I walked out with a cheque for 11,000 Baht.

[ikke1959]

1 hour ago, colinneil said:

Disagree with your post, we got our home insured 4 years ago with M.S.I.G.

4 days after the policy started there was a serious storm here.

Contacted insurance, they asked for photos of damage, which i sent, they gave me the ok to get repairs done.

Nobody came to check, after work done, sent them the bill, 2 weeks later cheque arrived in the post.

So i can say you are not correct with your comment.

 

1 hour ago, Albert Zweistein said:

Two weeks ago my car which I bought  2,5 years ago for € 29,750 was stolen. The other day my insurance informed me that 30 days after the date of the theft they wil pay me € 27,280 plus they provided me a car from that date for a period of 30 days plus a taxi to drop me at the place where I had to collect the car. Without any hassle.

So allow me to say that your statement is BS.

I am happy to hear all your good stories and good insurance companies, But I worked in a bankoffice for 26 years and I know how they work..My latest experience was not good too.. My life insurance expired and it would take 10 days to pay out, but it took more than 6 weeks and a lot costs too were deducted... Insurance companies only want your money 

[worgeordie]

An Insurance company that is adverse to risk,they take your

money when everything is going their way, things change

and they want to cancel the policy, Insurance companies

and Banks, in the past you could trust them,this is no longer

true.

regards worgeordie

[JoePai]

11 minutes ago, ikke1959 said:

 

I am happy to hear all your good stories and good insurance companies, But I worked in a bankoffice for 26 years and I know how they work..My latest experience was not good too.. My life insurance expired and it would take 10 days to pay out, but it took more than 6 weeks and a lot costs too were deducted... Insurance companies only want your money 

Umm any company wants your money when you buy something they are selling !

[herfiehandbag]

Worrying. I hope this doesn't become the "new normal" I am in the second year of a policy from "Dhipaya", initially selected pretty much at random from a raft of virtually identical policies offered on line.

 

Maybe this outfit is in trouble?

 

Does the Insurance Commission banning the practice mean that they will have to reverse their decision, and will other companies be unable to do the same? It may sound like that is the case but...

 

 

[Sqoop]

13 minutes ago, worgeordie said:

An Insurance company that is adverse to risk,they take your

money when everything is going their way, things change

and they want to cancel the policy, Insurance companies

and Banks, in the past you could trust them,this is no longer

true.

regards worgeordie

I am in my 50’s now I always remember that my grand parents ( who struggled through the 30’s ) hated the banks. They would rather hide the cash at home. 

 

 

 

 

[ikke1959]

4 minutes ago, JoePai said:

Umm any company wants your money when you buy something they are selling !

yes sure, but with insurance it is always less what you get and if you get paid the increase the insurance bill for you next time,

[robblok]

2 hours ago, BritManToo said:

Full refund for all policy holders?

No they just refunded the days left. But Thaivisa is a bit slow this was in the news yesterday and today the government is talking about fining and stopping this practice.

 

This is just thievery.

[Saltire]

42 minutes ago, worgeordie said:

An Insurance company that is adverse to risk,they take your

money when everything is going their way, things change

and they want to cancel the policy, Insurance companies

and Banks, in the past you could trust them,this is no longer

true.

regards worgeordie

Hit the nail on the head.

 

[hotchilli]

3 hours ago, webfact said:

Syn Mun Kong Insurance, therefore, has to effectively manage the risk effectively and needs to cancel the “Covid 2 in 1” insurance policy and end its entire coverage 30 days after the insurers received the official letter notifying the change.

Can't be paying out on insurances... no profit to be made on doing that.

[hotchilli]

13 minutes ago, robblok said:

No they just refunded the days left. But Thaivisa is a bit slow this was in the news yesterday and today the government is talking about fining and stopping this practice.

 

This is just thievery.

This is Thailand.

[robblok]

3 minutes ago, Saltire said:

Hit the nail on the head.

 

Does not happen in the West, i do agree with higher premiums. I mean the premium is based on what they think will be the risk so that is fair. What is not fair is to change the terms after an agreement. Its a business if it makes a mistake it should pay for it like any other business. I mean someone who did not take the insurance took a risk too, should they get money too because they did not have insurance but then buy one when there is a problem. That is not how insurance works.

 

I hope the government can stop this practice. 

[JoePai]

34 minutes ago, ikke1959 said:

yes sure, but with insurance it is always less what you get and if you get paid the increase the insurance bill for you next time,

Incorrect – example over the past few years what I am having to claim for my cancer treatment is more than my premiums – and no, they do not increase apart from the 5 year periods I was told before I started the policy

[wprime]

 

15 minutes ago, robblok said:

Does not happen in the West, i do agree with higher premiums. I mean the premium is based on what they think will be the risk so that is fair. What is not fair is to change the terms after an agreement. Its a business if it makes a mistake it should pay for it like any other business. I mean someone who did not take the insurance took a risk too, should they get money too because they did not have insurance but then buy one when there is a problem. That is not how insurance works.

 

I hope the government can stop this practice. 

 

The government will stop it. All SMK is done is destroy their reputation.

[Moonlover]

The well known rival news outlet has a much more comprehensive and reassuring article on this topic. I cannot provide a link, but you all know who I mean.

[J Town]

I dated an insurance agent in the states for a year and got to see the "behind the scenes" action. They are carrion birds, it's legalized extortion. When I pointed out to her that her main job was to deny the insured policy payout, we quickly were no longer a "we."

[Bluespunk]

4 hours ago, webfact said:

 

According to their statement, the decision had been made as

they only insure conditions which they do not have to pay out on. 

[Pattaya Spotter]

Did they cancel already issued policies or just stop issuing new ones? In any case a nothingburger as the Insurance Department has banned the practice.

[cyril sneer]

3 hours ago, BritManToo said:

Full refund for all policy holders?

Probably have to pay a fine to cancel it 

[mikebell]

1 hour ago, herfiehandbag said:

Worrying. I hope this doesn't become the "new normal" I am in the second year of a policy from "Dhipaya", initially selected pretty much at random from a raft of virtually identical policies offered on line.

 

Maybe this outfit is in trouble?

 

Does the Insurance Commission banning the practice mean that they will have to reverse their decision, and will other companies be unable to do the same? It may sound like that is the case but...

 

 

Two companies have gone bust today.  There will be more.

[Etaoin Shrdlu]

From what I can gather from the poorly-written articles in the press, SMK initially said that they would cancel their Covid policies after notifying their policyholders thirty days in advance and would refund unearned premium pro-rata. This is probably in accordance with the policy terms and conditions as most policies allow insurers to cancel for any reason as long as they give prior notification. Thirty days cancellation notice is typical, as is pro-rata refund if the insurer cancels. I am not sure on what basis the OIC could order SMK to forego their rights under their insurance policies, but I suspect the OIC can by citing damage to society or something similar.

 

SMK could have announced that they would no longer offer this product and would not renew any existing policies instead of cancelling mid-term. This would have helped them avoid some of the reputational damage that they've now incurred, albeit at a higher cost in terms of claims paid.

 

I have no sympathy for SMK since this product was put together and marketed specifically in response to the pandemic. It was not the case that Covid was unknown and caused unanticipated losses to a long-standing product that wasn't intended to address this situation.

 

Whatever the outcome, SMK will have a difficult time overcoming the public's ire and restoring any reputation they had. It is also a reminder to the public that an insurance company can cancel at any time as long as they give notice as stipulated in their policy.