Insurance Regulator Warns Brokers Over Policy Termination, Pledges Support After Quake
OIC moves to protect policyholders from unfair practices, as insurance sector responds to earthquake damage
The Office of Insurance Commission (OIC) has issued a stern warning to insurance brokers against the practice of terminating policies due to loan defaults, while simultaneously pledging support to policyholders affected by the recent earthquake.
Chuchatr Pramoolpol, Secretary-General of the OIC, expressed concern over reports of brokers acting beyond their legal remit.
It has come to the OIC's attention that certain non-life insurance brokers are facilitating premium payments on behalf of policyholders, coupled with loan agreements that grant the brokers the power to terminate policies in the event of payment defaults.
This practice, deemed a form of unauthorised lending, involves standardised contracts that leave policyholders with little to no room for negotiation.
Chuchatr highlighted the potential for these agreements to disadvantage policyholders, raising concerns over unfair contract terms.
"The OIC hereby cautions that brokers found to be terminating policies under these conditions, resulting in the insurance company halting coverage and refunding premiums to the broker, will face severe penalties," he stated. "This is a punishable offence, potentially leading to license revocation, and constitutes a clear conflict of interest."
He further emphasised that insurance companies must uphold coverage until the policy's expiry. The OIC has requested the Thai General Insurance Association to disseminate this information to its members.
In parallel, the OIC, in conjunction with the Thai Life Assurance Association and the Thai General Insurance Association, is actively monitoring the aftermath of the recent earthquake.
With widespread damage to life and property reported, the regulator has instructed insurance companies to expedite assistance to affected policyholders.
"The OIC extends its deepest sympathies to those affected by this disaster,"Chuchatr said. "We urge policyholders to review their coverage and contact their insurers. All relevant parties are committed to providing swift and comprehensive support to facilitate recovery."
For further inquiries, the public are advised to contact the OIC hotline on 1186 or utilise the Chatbot @oicconnect.
