OIC prohibits cancellation of Covid-19 insurance before policy ends
Insurance companies have been prohibited from cancelling Covid-19 insurance policies before the contract ends, except in cases where the company has evidence of insurance fraud committed by policyholders.
The order was issued by the Office of the Insurance Commission (OIC) on Friday after Syn Mun Kong Insurance Plc announced that it was cancelling its previously sold “Covid 2 in 1” insurance policies with coverage ending in 30 days, sparking complaints from thousands of customers.
Syn Mun Kong said the premium amount for the coverage remaining on the policy would be returned to customers within 15 days of the cancellation.
“Any Covid-19 insurance policies issued by the company before July 16 and still in effect cannot be terminated by the company before the contract ends,” OIC secretary-general Suthipol Taweechaikarn said.
“The insurer can cancel the policy only if it can prove that the customer has committed insurance fraud for their own or another party’s benefit.
“The order aims to prevent damage to customers of Covid-19 insurance amid the ongoing outbreak, and to maintain consumers’ confidence in the country’s insurance system,” he added. “This order will be applicable to all insurance companies.”
Suthipol added that customers can report unfairness in insurance contracts via Line Official Account @oicconnect, or call 1186 hotline.
News sources reported that on Friday several insurance companies announced that they would continue to honour their Covid-19 policies. These companies included Dhipaya Insurance, Bangkok Insurance, Deves Insurance, Thai Insurance, Muang Thai Life Assurance, Viriyah Insurance, and others.
