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Published on July 20, 2007

Manus Binmahmood, president of Kamol Insurance, said many Thai Muslims bought insurance coverage from Malaysia as none of the existing

takaful products in Thailand met Islamic requirements.

"Around Bt400 million to Bt500 million in premiums has left the country for personal accident and motor-insurance coverage. We'll tap this group of customers," said Manus.

The firm set up a separate shariah committee, chaired by Den Tohmeena, a former senator who specialises in Islamic matters, to make sure takaful principles are strictly followed.

Dhipaya Insurance and Finansa Life Assurance also provide takaful insurance, but some features do not follow Islamic principles.

According to Sarsak Tuntasuwan, deputy director-general of the Insurance Department, many Islamic people choose to stick with the religion's regulations rather than having a compulsory motor-insurance policy that does not completely conform to Islamic insurance structure.

"This will help Islamic people who don't want to break their law but can't find the right product that conforms to their religion," he said.

Kamol Insurance announced its official re-branding yesterday and is tipped to break into the top 10 non-life insurers in the country within three years. The firm was founded in 1973 and its shareholding was restructured three years ago.

It aims for Bt1 billion in premiums this year and will increase its capital by another Bt40 million. The first half saw the company taking Bt10 million in profit, compared to a Bt20-million loss the same period last year.

Last year, it received Bt700 million in premiums. It recorded Bt411 million in premiums in the first half of this year.

Sarsak also said Thanasin Insurance was expected to restart operations next month, as the new owner has gradually injected money to repay the firm's debts.

He expects Sampanh Insurance, which was ordered to suspend selling new policies last Tuesday, to follow the same procedure as Thanasin.

"Thanasin's new owner has showed signs of solving the problem and continuing the business. We're expecting Sampanh to do the same. The Insurance Department has the authority to shut down the firm if it breaks the law. However, the bureau considers that to shut it down is an easy way out but causes a lot of damage. Everybody deserves a second chance if they are really determined to do it properly," said Sarsak.

Piyarat Setthasiriphaiboon

The Nation