Commercial Insurance Company Closed Down

[george]

Commercial Insurance closed down

BANGKOK: -- Commercial Insurance Co Ltd was shut down yesterday by Commerce Minister Thanong Bidaya after the cash-strapped insurer’s new rehabilitation plan was rejected by the Insurance Department.

The department had given Commercial Insurance a second chance to submit a rehabilitation plan after it turned down the first plan that was due on June 20.

The insurer re-submitted the plan on Monday, one day before the deadline given by the department.

Yesterday afternoon, Commercial Insurance held a press conference.

While chairman Yoschai Buasuwan was explaining his company’s revised rehabilitation plan, a reporter received a phone call. The reporter then spilled the beans that Thanong had signed the order to close Commercial Insurance.

Yoschai was shocked and disappointed.

“I thought the department would take around a week to consider our second plan. I have no words to say now. I just don’t understand why the department did this to us. We were ready to follow whatever the department suggests but it never called us to discuss anything.”

Director-general Potjanee Thavaravanit then called an urgent press conference at the department’s office at 4pm. She said the department decided to pull the plug on Commercial Insurance because of its lack of sincerity.

“The insurer showed no transparency towards its information. Its management team didn’t get along. Its expansion was inefficient. Its accounts were untraceable and it failed to service its customers,” she said.

Commercial Insurance’s policyholders now face two choices – sue or change insurers.

“If customers want their money back, they can come to the department’s office to make a legal claim. For those who still want protection, we have 16 other insurers willing to help but there are some conditions. The customers have to work things out with the new insurers,” she said.

Early last year, the department warned the insurer to increase its reserves as well as raise its registered capital by Bt150 million to Bt300 million in February this year.

As of last month, Commercial Insurance had been sued by 3,900 policyholders, who accused it of not paying Bt184.72 million in claims.

The department said the insurer had assets of only Bt798.42 million against debts of Bt1.33 billion.

In May of 1997, Rattanakosin Insurance was ordered to stop operating by the department after it ran into similar problems.

--The Nation 2005-07-08

[marshbags]

As a folow up to the comment in the Nation i tried all day to contact my insurance broker but they wouldn,t answer the phone.

Normally they answer immediately !!!!!

I also tried to contact the dealers who i bought my pick up from and again got no joy. When i purchased the truck they recommended Commercial insurance.

As a further observation the ins. co. where not supposed to take any future insurance from April until they made good and there required obligations where met.

I renewed my insurance on May 26th 2005

There was also a longer article on the same subject in the Bankok Post

Today i hope to get a substitute cover but will not drive until i have another valid insurance,hopefully with a reliable co.

Please do not think you are covered by C.I.Ltd. because if you have an accident you will not have a leg to stand on.

Ignorance is no excuse as we all know especially in Thailand and the consequences enormous if you drive. Thank you for allowing me to offer my observations and good luck to everyone affected.

[bdenner]

Thanks for the info.

As a further observation the ins. co. where not supposed to take any future insurance from April until they made good and there required obligations where met.

As of last month, Commercial Insurance had been sued by 3,900 policyholders, who accused it of not paying Bt184.72 million in claims.

Shiite! I get the idea I have been driving around this country without any effective insurance since April

Trying to contact my broker now without success.

Any recomendations for a good insurance company? We have an AIA agent up the road are they any good?

[marshbags]

Thanks for the info.

As a further observation the ins. co. where not supposed to take any future insurance from April until they made good and there required obligations where met.

As of last month, Commercial Insurance had been sued by 3,900 policyholders, who accused it of not paying Bt184.72 million in claims.

Shiite! I get the idea I have been driving around this country without any effective insurance since April

Trying to contact my broker now without success.

Any recomendations for a good insurance company? We have an AIA agent up the road are they any good?

<{POST_SNAPBACK}>

15-07-05

Hello bdenner,

Sorry for the delay in replying, it,s taken me this long to find a good insurer who are named THE VIRIYAH INSURANCE CO. LTD. They come highly recommended and pay up straight away on any legitimate claims.

They are a bit more expensive but there cover is better and they are good by all reports.

Unfortunately it is going to cost me plenty, i have to pay 14,255 baht and this takes into account any allowed government deductions from my now non legititmite policy. Apparently you should go to your local government offices related to transport and they supply you with a list of the chosen ins. brokers.

They all have the same charge related costs on each particular policy so there should not be any difference on this in theory, however you may get some but make sure this time the co. are financially o.k.

The local broker said that C.Ins. Ltd. should not have issued any new policies starting 7 months ago under restrictions laid down by the commerce ministry until they met new finacial targets. ( which they never did of course. )

In my case i only renewed 39 days from the winding up order and withdrawal of the licence as per N.wide comment last week.

He also said that ALL the insurance brokers knew of the order 7 months ago and should not have issued new policies after then for this company until a further announcement from the minister of commerce. ????????????

Again if you want to complain you have to put a claim in with C.In..Ltd personally in Bangkok but the chances of getting redress are very small, if at all possible.

In my case it,s cost me 18,275 lost plus the 14,225 baht.

Also any time i went for a drive i was not insured and it would have cost me big time had i had any accidents which really p***** me off.

good luck then with your future policies and if i can offer any further information please email.

cheers marshbags