Motion to close Southeast Insurance still under probe, assures OIC
The Office of Insurance Commission (OIC) announced on Thursday that it would form a panel to look into Thai Group Holdings’ (TGH) motion to shut down its loss-making subsidiary Southeast Insurance Plc to see if it follows all legal requirements.
TGH told the Stock Exchange of Thailand on Wednesday that it had shut down Southeast Insurance because an increased number of claims for Covid-19 pay-outs had resulted in huge losses. However, the firm insisted it would be able to pay customers and stakeholders.
“When an insurance company wishes to close its business, they have to inform the OIC of the following before the closure can be approved,” the OIC announcement said.
1) Steps taken to manage or transfer active insurance policies to a new operator.
2) Steps taken inform its customers and beneficiaries of the closure and notify them on how to exercise their legal rights.
3) Steps taken to withdraw or transfer the deposit that it had placed with the OIC.
4) Asset and debt management plans, both in the loss insurance business and other related businesses.
5) The period during which regulations 1 to 4 will be implemented.
“Customers need not panic, as Southeast Insurance cannot legally shut down its business until it gets approval from the OIC,” the announcement said. “The OIC will appoint a task force comprising experts in forensic accounting, loss insurance analysis, business management and investment, as well as legal and compensation issues to ensure that all policyholders, beneficiaries and stakeholders receive their compensation as stated in the policies.”
