Thursday, July 18, 2024

Court spares Office of Insurance Commission in Bt40 billion lawsuit

The Central Administrative Court dismissed a Bt40 billion lawsuit against the Office of the Insurance Commission by Syn Mun Kong Insurance related to banning COVID insurance policy cancellations.

The Central Administrative Court Dismisses Bt40 Billion Lawsuit

The Central Administrative Court has ruled in favor of the Office of the Insurance Commission, dismissing a Bt40 billion lawsuit brought by Syn Mun Kong Insurance Public Company. The lawsuit stemmed from the commission’s order prohibiting the cancellation of the company’s “COVID 2 in 1” insurance policies, which were sold to around a million customers during the peak of the COVID-19 pandemic in 2021.

Background of the Case

In mid-2021, Syn Mun Kong notified its customers who had purchased the COVID coverage that their policies would be terminated due to the financial strain caused by compensating policyholders. This sudden decision sparked panic among customers of other insurance companies with similar policies. In response, the commission issued order 38.2564, preventing all insurance companies from cancelling their COVID insurance policies, safeguarding around 16 million insured individuals from financial harm until the end of their policy terms.

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