Government to shoulder Covid-19 insurance claims as insurers buckle under 60 billion baht payouts

[webfact]

 

Deputy Finance Minister Julapun Amornvivat has revealed that the Thai government may have to step in to assist with the hefty burden arising from Covid-19 insurance claims.

 

The grim situation has seen total payouts skyrocket to almost 60 billion baht, leaving non-life insurance companies in shambles and prompting the closure of those unable to meet the financial demands.

 

Julapun disclosed that the General Insurance Fund (GIF) under the Office of the Insurance Commission (OIC) lacks the necessary funds to cover the escalating claims. This dire circumstance has already led to the revocation of licences for several insurance companies, thrusting them into closure due to insufficient premiums and capital reserves.

Julapun highlighted the severity of the financial strain faced by the insurance industry.

 

by Mitch Connor 

Photo courtesy of thainews.prd.go.th

 

Full story: The Thaiger 2023-12-21

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[ChaiyaTH]

Loll..

[John Drake]

So, digital wallet payouts.

Money losing BTS subsidies.

Tourist insurance payouts.

Now, another 60 billion baht bailout of Covid insurers.

 

How is the baht not collapsing?

Who is going to pay for all this? (Maybe see farang tax topic?)

 

[John Drake]

Oh, forgot the submarines/frigates.

[proton]

They were meant to cover defaults on car insurance due to companies going bust over covid payouts 2 years ago. They did for a very small number of applicants, after the limited pool of cash was used up paying the public out nothing- no answering calls email or letters!

[hotchilli]

17 hours ago, webfact said:

The grim situation has seen total payouts skyrocket to almost 60 billion baht, leaving non-life insurance companies in shambles and prompting the closure of those unable to meet the financial demands.

They took on the premiums let them fold.

[jippytum]

The underwriters agreed the policy conditions and the companies accepted and pocketed the premiums Thank you. 

When they had to pay out they moan and want to be reibursed by the taxpayer. 

Heads they win tails they win. 

 

[bamnutsak]

Just one more of the many unpaid bills left hidden by the Prayuth administration.

 

This won't be the last.

 

 

 

[PETERTHEEATER]

Again we're left guessing.

'Government to shoulder.......'

'Government may.........'

'Potential injection of 50 billion baht........?

 

[Enzian]

Wasn't the problem that the policies were written to the effect that if one were diagnosed with Covid at all that a certain payout was guaranteed regardless of the actual costs of treatment? This could be on a list of the top ten most crazy things that have happened in Thailand in this century. I had one of those policies, tested positive but didn't go to a doctor and get paperwork so there was no point in filing, and besides by then I really didn't believe they would pay.

[Moonlover]

32 minutes ago, Enzian said:

Wasn't the problem that the policies were written to the effect that if one were diagnosed with Covid at all that a certain payout was guaranteed regardless of the actual costs of treatment? This could be on a list of the top ten most crazy things that have happened in Thailand in this century. I had one of those policies, tested positive but didn't go to a doctor and get paperwork so there was no point in filing, and besides by then I really didn't believe they would pay.

 

Yes exactly. I think they were called 'see, pay, done' policies. They were a scammers delight. Folks were buying the policies and then having 'catch it' parties to share the virus around. The most ridiculous insurance policy ever written.

 

This was a major blunder by the insurance companies and was nothing to do with the government of the day @bamnutsak.

[Purdey]

I am amazed how much money this government is planning to waste. Don't they have advisers to tell them what will happen if the country goes bust? 

Edited December 22, 2023 by Purdey

[khunjake]

This would have been the absolute perfect setup for the BOT to let the baht fall or better yet push it over 40. This would make the baht and Thailand much more competitive with other regional currencies that are winning the FDI game. Of course, another opportunity floundered with Indonesia, Vietnam and now Malaysia (w/ super weak ringgit) being the cheapest countries to do business in.

[Paradise Pete]

Perhaps the insurance companies got their advice from the forums here when they set low premiums for covid coverage. "These farangs say it's no big deal. Just a flu. So let's write these policies and rake in the dough."