Insurance Department delays decision on Thanasin
The Insurance Department has further delayed its decision on whether permanently to withdraw the licence of financially troubled Thanasin Insurance, which has missed a deadline to inject Bt200 million into the Insurance Fund.
Thanasin missed the deadline last Friday, reflecting its inability to raise capital in time. Deputy Commerce Minister Oranuj Osatananda yesterday said the department would consider whether to order the company to shut down permanently or to extend the deadline for the firm. "The department must consider the case carefully," she said. "If the department orders the firm to shut down, it must ensure that thousands of claims will be paid." Oranuj said the Insurance Department was also instructed to monitor four other insurers closely that lacked liquidity to pay the Insurance Fund: Saha Life Insurance, Advance Insurance, Finansa Insurance and Thai Medical Care. They are still operating but are under close supervision, and they are still required to raise capital, she said. If Thanasin is ordered to close down, the General Insurance Association will have to be responsible for the payment of all claims. The association would then divide the claims among its membership. Although Thanasin injected about Bt26 million for the payment of claims, thousands of claims await payment. Thawee Building and Construction, a giant Thai trading firm focused on China, took over Thanasin Insurance early this month. The new board met a deadline of yesterday evening to submit a report raising its capital status and a restructuring plan. However, the company has asked the department for an extension. It said it would try to prepare Bt174 million in cash to secure its liabilities and sell property to maintain its insurance reserve fund, to which its owes about Bt600 million. Petchanet Pratruangkrai The Nation
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