SMK seeking funds to compensate Covid claims worth THB30bn
Syn Mun Kong Insurance Plc (SMK) on Thursday confirmed it will continue to pay out on ordinary policy claims and is studying guidelines to compensate Covid-19 insurance policyholders as part of its business rehab plan.
SET-listed SMK made the announcement a day after reporting a loss of 29 billion baht in the first quarter, sending its share price plummeting by more than 23 per cent to 6.40 baht as of press time on Friday.
The company applied to the bankruptcy court seeking business rehabilitation on May 17, saying it was unable to honour about 30 billion baht in Covid-19 policy claims.
The court accepted the application, granting a stay on having to make further payouts until the rehab plan is in place. The date for hearings on the plan was set for August 15.
SMK Covid-policy holders voiced their frustration with the stay on payouts via Facebook and other platforms, demanding immediate compensation.
The company said in a statement on Thursday that it was in discussions with the Office of Insurance Commission (OIC) over how to take care of policyholders during the business rehab process.
It assured holders of SMK non-Covid policies that it would continue to honour their contracts.
SMK said it was seeking sources of funds from investors to pay compensation and/or turn debt into equity and/or amortisation.
However, the ability to pay compensation depended on the company’s future performance, it added.
SMK said its performance in non-Covid performance in the first quarter remained strong with a profit of 292.42 million baht, while it retained the support of Covid-19 insurance creditors, investors, and the OIC.