Earthquake causes up to 100 billion baht damage, economy unaffected
Finance Minister Pichai Chunhavajira stated that the recent earthquake damage has not impacted the economy, while reaffirming the government’s commitment to support affected individuals.
Reports suggest that up to 5,500 buildings in the capital might have sustained damage, with total financial losses potentially reaching 100 billion baht.
Pichai mentioned on March 28, the day of the earthquake, that the ministry, in conjunction with state officials, is closely monitoring the situation, although the functioning of government agencies, state banks, and the financial system remains unaffected.
The ministry is investigating additional support measures for earthquake victims, with state-owned financial institutions directed to implement strategies to provide liquidity to help businesses recover.
The Office of Insurance Commission (OIC) has been instructed to collaborate with insurance companies to evaluate damage and potentially incorporate earthquake-related damage into their coverage if deemed necessary.
Somporn Suebthawilkul, president of the Thai General Insurance Association (TGIA), noted that the State Audit Office building, which collapsed, was approximately 50% complete at the time of the earthquake. As a result, the claim amount is anticipated to be around 1 billion baht, based on the insured value and subject to any necessary deductions.
The building was insured by consulting firm Siam Consultants & Brokers in conjunction with four insurance companies, with a total insured value of 2.136 billion baht. Somporn identified the insurers as Dhipaya Insurance, which holds 40% of the coverage, Bangkok Insurance (25%), Indara Insurance (25%), and Viriyah Insurance (10%).
These insurers have reinsurance arrangements to mitigate their risks, with Dhipaya Insurance having reinsured 95% of its coverage.
Somporn estimated that overall earthquake-related damages are initially expected to be below 100 billion baht, in contrast to the 150 billion baht incurred during the Covid-19 pandemic.
Chuchart Pramolpol, Secretary General of the OIC, reported that damage assessment requests have been submitted for 5,500 buildings in Bangkok.
Nusara Banyatpiyaphod, President of the Thai Life Assurance Association (TLAA), confirmed that the association is fully prepared to manage claims, ensuring services will continue without interruption, reported Bangkok Post.
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