BANGKOK (NNT) – The Office of the Insurance Commission (OIC) has issued a directive barring insurance companies from canceling active COVID-19 insurance policies, following yesterday controversial decision by one a firm to terminate COVID-19 insurance packages they have been offering.
The Office of the Insurance Commission (OIC) yesterday issued a directive prohibiting insurance companies offering COVID-19 insurance packages in Thailand from terminating active contracts already held by their clients.
The decision was made following an announcement of insurance contract termination by the firm Syn Mun Kong Insurance, telling clients their COVID-19 insurance packages with the firm will be terminated within 30 days.
The OIC Secretary General, Suthiphon Thaveechaiyagarn said the office disagrees with the firm’s decision as doing so is considered taking advantage of customers, while the firm has never given notice to the OIC as the regulator.
The OIC has instructed Syn Mun Kong to continue honoring the contracts already in existance, allowing existing customers to file claims according to their cover. While the company may consider discontinuing such offers to new customers if they wish, it may not terminate contracts held by existing ones.
Mr Suthiphon said the OIC, as the registrar, can still enforce a lawful mandate against Syn Mun Kong, forcing them to pay claimed compensation according to existing contracts.
The OIC’s directive yesterday, is applicable to all insurance firms offering COVID-19 insurance packages, effectively waiving an insurance company’s right to terminate a contract.