He echoed Deputy Prime Minister MR Pridiyathorn Devakula's desire to turn the department into an independent organisation within a year.

Krirkkrai said that under the current administration, policies initiated by the previous government that proved genuinely useful to the people would continue to be supported.

Under the administration of ousted Prime Minister Thaksin Shinawatra, three main insurance measures were implemented: a Bt50,00 tax deduction for policyholders and the Ua Athorn and Look Ka Tan Yoo (Grateful Children) insurance schemes.

During the Thaksin administration's first term, the government approved raising the ceiling for the personal income tax deduction for life-insurance policyholders from Bt30,000 to Bt50,000.

Then almost two years ago the Ua Athorn insurance scheme was launched. Ua Athorn is a personal accident insurance policy with annual premiums as low as a few hundred baht. The scheme posted a Bt117-million loss last year, due mainly to motorcycle deaths.

Finally, the Look Ka Tan Yoo insurance scheme, approved a few months before the September 19 coup, involves policies that children purchase to cover their parents. Those buying them may deduct up to Bt15,000 extra from their income tax.

The Insurance Department is currently preparing to provide fire insurance for communities and crop insurance for farmers.

Besides these proposed policies, Krirkkrai emphasised good governance on the part of the department and building up social awareness of the new schemes.

He said the plan to separate the Insurance Department from the Commerce Ministry would proceed and should be completed within a year.

"This issue has been discussed for quite a while now. It'll be nice finally to complete it. A committee will be set up to draft the law," said Krirkkrai.

A new director-general for the department, to replace Potjanee Thanavaranit, who retires this year, has not yet been officially named.

Also yesterday, Krirkkrai instructed the Business Development Department to amend the Kingdom's business laws in order to protect the competitiveness of domestic enterprises while increasing foreign investors' confidence.

He urged the department to revise any trade regulations that were flawed or not up to date, in order to facilitate both domestic and international traders.

For instance, foreign-business, electronic-trade and business-enterprise laws will be amended to reflect a modern trade environment, thus protecting local enterprises.

Tthe amendments would improve Thailand's image among foreign businessmen, he said

The Kingdom's business laws were the subject of controversy earlier this year after ousted Prime Minister Thaksin Shinawatra sold Shin Corp to Singapore's Temasek Holdings in January. Kularb Kaew, a major shareholder in Temasek, is still under investigation to determine whether it breached the Foreign Business Act.

"All officials have been ordered to amend the laws carefully, based on fairness and equality, and to avoid conflicts of interest. As a government agency, the department should act as a lawyer for the economy," he said.

Piyarat Setthasiriphaiboon,

Petchanet Pratruangkrai

The Nation