Insurance giant loses 40 billion baht Covid lawsuit
The Central Administrative Court dismissed a colossal 40 billion baht lawsuit against the Office of Insurance Commission, filed by Syn Mun Kong Insurance Public Company.
This landmark case revolved around the commission’s prohibition on cancelling the company’s controversial Covid 2 in 1 (jer-jai-job) insurance policies, sold to approximately one million customers at the peak of the Covid-19 pandemic in 2021.
Back in mid-2021, Syn Mun Kong rocked the insurance world by informing its policyholders that their Covid coverage was to be abruptly terminated. The company cited severe financial strain due to the hefty compensation demands from insured clients as the primary reason for the cancellations. This sudden move sparked widespread panic, not only among Syn Mun Kong’s customers but also among policyholders of other insurers who feared similar actions.
Public protests erupted as discontented customers voiced their outrage. In response, the Office of the Insurance Commission stepped in decisively, issuing Order 38.2021. This crucial directive barred all insurance companies from cancelling their Covid insurance policies, thereby safeguarding the interests of 16 million policyholders across the industry. The collective liability from these policies was estimated to be a staggering 100 billion baht.
The court’s decision underscored the potential ramifications if Syn Mun Kong were allowed to evade its compensation obligations. The ruling noted that such a precedent could undermine trust in the insurance sector, leading other companies to shirk their commitments under different policies. The protection offered by the commission’s order ensured that all 16 million policyholders remained covered until their policies naturally expired, reported Thai PBS World.
In related news, health concerns over PM2.5 air pollution in Thailand are escalating, prompting insurance companies to develop policies that cover respiratory diseases attributed to the hazardous particulate matter. TQM Insurance Brokers, in collaboration with Bangkok Insurance (BKI), has introduced a novel health insurance policy specifically designed for ailments related to PM2.5 dust exposure.
