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Published on August 4, 2007

Director-general Chantra Purnariksha said the package should ensure that employees were compensated when companies closed down. In addition, employers would face a lower compensation burden.

"This insurance is an alternative for employers to help guarantee their employees when they lose their jobs. The package will also ensure that companies will not face more burdens to pay compensation after a business closes down," she said.

So far, Kamol Insurance and Ace Life Insurance have received certification from the department to sell the new packages.

The department reported that only 289 employees from various businesses had so far been protected.

The insurance will provide laid-off workers with five to 10 times their normal monthly wage and different periods of compensation, depending on the type of policy.

Meanwhile, Chantra said that financially troubled Thanasin Insurance and Samphan Insurance would soon receive help from a foreign joint-venture company aimed at increasing their efficiency.

The companies will report their progress to the department next week on plans to increase their capital in the Insurance Fund and to restructure their operations, said Chantra.

Petchanet Pratruangkrai

 The Nation