The government has unveiled its natural Catastrophe insurance policy, which is aimed at boosting confidence among the general public and investors. The new type of insurance policy, issued by virtue of the ‘National Catastrophe Insurance Fund’, is intended to offer protection to the public at a reasonable cost, while boosting confidence among the people of Thailand after last year’s severe flooding. The newly-launched insurance product is the collaboration between the government and 54 insurance companies.
“Catastrophe Insurance Policy” will offer coverage for damages caused by the 3 types of natural disaster, namely floods, earthquake and windstorm. The National Catastrophe Insurance Fund committee thusly concurred on the definition of “catastrophe” to be a natural disaster.
Business operators both SME and industrial that wish to buy a catastrophe insurance policy must first have in possession a fire insurance policy or an Industrial All-risk (IAR) policy. Only then can they buy a catastrophe insurance policy as a supplement to the original policy.
The fund under this policy will not cover the loss to the property of persons or businesses in the floodway since they will be covered directly by government special indemnification assistance.
Upon the declaration by the government, insurance companies will dispatch loss adjusters to inspect the damages. Claim payment will be paid according to the actual loss within the sublimit.
Claim Amount
Household : Flood : No deductible
– Water reaches the floor of the household: Minimum THB 30,000 coverage
– Water reaches 50 cm: Minimum THB 50,000 coverage
– Water reaches 75 cm: Minimum THB 75,000 coverage
– Water reaches 100cm: Minimum THB 100,000 coverage
Household : Windstorm/Earthquake: : No deductible
Loss adjuster / Surveyor will determine the actual loss and the business operators will be paid
Accordingly.
SME and Industry Sector
Flood/Windstorm/Earthquake: There shall be deductible 5% of sublimit
Loss adjuster / Surveyor will determine the actual loss and the business operators will be paid accordingly.
Source: LinkedIn Group ‘Thailand Business Network’
