Board of OIC accepts a request for business dissolution “Southeast-Thai Insurance” sets rules-conditions to protect consumer benefits must be completed before submitting to the OIC Board to consider whether to approve the liquidation or not Emphasize that during this time, both companies still have to operate their business as usual – people can still file insurance claims as before
On January 28, 2022, Mr. Adisorn Phiphatworaphong assistant secretary line of law and litigation Office of the Supervisory Board Insurance business (OIC) revealed that according to Southeast Insurance Public Company Limited and Thai Insurance Public Company Limited have submitted a letter of request for a license to terminate the non-life insurance business under Section 57 of the Non-Life Insurance Act B.E. and amended to be effective immediately from the date that the Company’s non-life insurance business termination plan has been authorized by the Insurance Commission (OIC), and both companies will return their licenses to continue to operate non-life insurance business
by requesting approval for the Non-Life Insurance Fund to act as a director related to the termination of the company’s non-life insurance business according to the rules and the guidelines that the Insurance Fund determines
In this regard, the Office of Insurance Commission has set up a working group to consider the request for cessation of non-life insurance business. which has a deputy secretary for supervision chairman of the working group with Deputy Secretary-General for Audit and Deputy Secretary-General case law and protect benefits and there is an assistant secretary in the relevant departments as a working group by having a meeting to consider this matter carefully
later the office The OIC has brought the matter to the Legal Sub-Committee to consider the matter. by giving the company an opportunity to participate in the clarification as well The Sub-Committee is of the opinion that the OIC is still unable to consider allowing the company to liquidate its business.
Because the company must comply with the rules, procedures, conditions and periods to protect the benefit of the insured. beneficiaries under the insurance policy or stakeholders, as prescribed by the OIC under Section 57 before the OIC allows the company to dissolve its business.
The Office of Insurance Commission (OIC) has brought the aforementioned agenda into consideration at the meeting of the Insurance Commissioner (OIC Board) No. 1/2565 today (28 Jan. 65) The Board of OIC has considered the facts, laws and opinions of the Legal Sub-Committee in detail and resolved that
In order to comply with Section 57 of the Non-Life Insurance Act B.E. 2535 as amended by the Non-Life Insurance Act (No. 2) B.E. Southeast Insurance Public Company Limited and Thai Insurance Public Company Limited
Request to stop doing non-life insurance business to protect the benefit of the insured beneficiaries under the insurance policy or stakeholders Therefore, the rules, procedures, conditions and time periods for both companies to comply with the law have been set as follows:
1. Methods for managing or transferring obligations under all types of insurance policies that are still binding to the transferee’s insurance company. To do the following
1.1 The applicant company shall notify the name of the company that will accept the insurance policy transfer to the OIC for consideration and approval first.
1.2 The benefits under the insurance policy of the transferred company must be equal to or not inferior to the benefits that are covered by the binding of the original insurance policy.
2. Channels and methods of giving notice to the insured beneficiaries under the insurance policy and stakeholders know and exercise their legal rights Must be a lawful action, such as a notice to the creditor due to the replacement of the debtor under Section 350 of the Civil and Commercial Code.
3. The transfer or request for reserve money under section 23 (1) that the insurance company has placed with the registrar under section 24 can be done only when:
3.1 The company has transferred the obligations under the insurance policy that are still binding. And the new debt conversion with the replacement of the insurer has been completed.
3.2 The insurance company can show evidence that there are no liabilities or obligations under the insurance contract.
4. The applicant company shall proceed as follows:
4.1 Show a detailed work plan of asset and liability management in relation to non-life insurance business.
and activities permitted to operate under section 28 shall be informed by the OIC.
4.2 The assets and liabilities under Clause 4.1 must be managed within the period specified in Clause 5 and in case of unable to do so. The company must transfer assets and obligations to the transferee. by showing evidence that the transferee agrees to accept such assets and liabilities as well
4.3 Report the results of the implementation under Clause 4.2 to the OIC for acknowledgment.
5. PERIOD OF PERFORMANCE In this regard, the Company shall notify the Office of the OIC within 7 days from the date of receipt of the notice of consideration from the OIC.
The above criteria have the same important characteristics as the business transfer criteria under Section 13. Let the company notify the results of the operation.
to the Office of the OIC to propose to the OIC for consideration and approval for the dissolution of the business
The issue that the company Southeast Insurance Public Company Limited and Thai Insurance Public Company Limited request the Non-Life Insurance Fund to be the director involved in the cessation of the company’s non-life insurance business in accordance with the rules and guidelines prescribed by the Insurance Fund, the OIC sees that according to Section 79, the non-life insurance fund shall have the duty to protect creditors who are entitled to receive debts arising from the insurance in the event of “the company whose license is revoked to undertake non-life insurance business” and to “develop the non-life insurance business for stability and stability”
But not including the case that the company requests to cease its non-life insurance business under Section 57, therefore cannot come in to proceed in the process of cessation of business at the request of the two companies aforesaid.
In the next step, the Office of Insurance Commission will receive a letter notifying the result of consideration of the application for cessation of non-life insurance business. including the above criteria and conditions for Southeast Insurance Public Company Limited and Thai Insurance Public Company Limited
After that, a meeting will be held with the company to understand. and proceed in accordance with the rules, procedures, conditions and period of business cessation under Section 57. The OIC has assigned a legal sub-committee. Help supervise in case of problems in practice
In this regard, progress will be reported to the OIC Board of Directors to consider taking legal action at the next meeting. As usual, therefore, the insured or the beneficiary can claim compensation from the company as usual.
