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Published on December 12, 2007

However, the office will order those companies to compensate their policyholders.

Those companies have failed to solve their financial crises for more than six months.

A source from the agency said yesterday that secretary-general Chantra Purnariksha would declare a final deadline for the three firms to secure their financial status. "It was quite a long period since we allowed those firms to seek new investors. The office must do something to solve the problems," the source said.

Samphan has failed to maintain its insurance fund as required by law and to pay claims since June. It has reported finding new buyers to help the company, but could not reveal the names.

It has been ordered to suspend the writing of new policies until it can solve its problems and settle claims totalling Bt300 million to 5,500 customers. It seemed that the insurer was close to clinching a deal with a new investor, but the firm has shown no progress up to now. Neither have Thanasin and Saha Life Insurance.

Those companies have to raise hundreds of millions of baht to bring their funds up to the minimum level. Saha Life is in an unstable position, as the agency requires it to report on its progress every 15 days, while Thanasin was ordered to stop taking new policies in March.

Petchanet Pratruangkrai, The Nation