Board of OIC orders “The One Insurance” to temporarily stop accepting non-life insurance

Dr. Suthiphon Thaweechaikarn, Secretary-General of the Insurance Commission (OIC), revealed that the meeting of the Insurance Commission (OIC) No. 14/2564 when On December 1, 2021, it was resolved to approve The One Insurance Public Company Limited to temporarily suspend non-life insurance. From 1 December 2021 onwards

In this regard, the circumstances and evidence appeared to the Registrar that The One Insurance Public Company Limited had an unstable financial position. with liabilities in excess of assets Allocation of backing assets insufficient as required by law have liquid assets Not enough for a claim And it appears that the capital adequacy ratio is lower than the criteria prescribed by law. Including evidence that the company has no intention to revise the company’s financial position. As a result, it cannot be assured that the Company is able to repay its debts in accordance with its obligations to the insured or the public. There is a late payment of compensation. which constitutes a violation or failure to comply with the notification of the Ministry of Commerce regarding the rules, procedures and periods that are considered to delay the payment of compensation or delay the return of insurance premiums of non-life insurance companies And there are still many outstanding claims that affect the position and operation of the company. There is also an act that is considered a violation of the law by announcing the closure. without giving reasons This caused panic to the insured and many people because of contacting the company’s office. but did not receive any service from the company

From the fact that such evidence appears The registrar is therefore of the opinion that The One Insurance Public Company Limited has a status or operation in a manner that may cause damage to the insured or the public in order to supervise and monitor the resolution of the situation and the operation of the the company to be all around It covers both financial stability monitoring and accurate and transparent operational transactions. This will enable the company to operate business sustainably. including preventing damage to the insured and the public in the future By virtue of Section 52 paragraph one of the Non-Life Insurance Act B.E. 2535 and amendments together with the resolution of the Insurance Commission At the meeting No. 14/2021 on December 1, 2021, the Registrar, with the approval of the OIC Board, ordered The One Insurance Public Company Limited to proceed as follows:

1. Temporarily stop the non-life insurance.
2. Modify the financial position to be sufficient for the obligations. and provide an adequate capital adequacy ratio as prescribed by law within 15 days from the date of receiving the order.
3. The company is open to contact with the public every day according to the OIC’s announcement regarding the determination of non-life insurance companies to open. Make contact with the people
4. Prepare a summary report on the details of the insurance policy that the company will have to pay compensation to the insured, such as the insurance policy number. Insured name Amount to be indemnified and submit the report to the OIC every business day from the date of acknowledgment of the order and record the entries in the register book, account book, calculate and maintain the insurance reserve to be correct and complete according to the law.
5. Accelerate the payment of compensation under the insurance contract to the insured within the period specified by law.
6. To report the progress in the implementation of Article 2, Article 3, Article 4 and Article 5 every business day until there is an order to change.

However, in accordance with Section 54 of the Non-Life Insurance Act B.E. 2535, when the Registrar orders the company to temporarily suspend insurance Directors, employees and employees of the company are prohibited from ordering the company’s money. or moving or disposing of the Company’s assets except for the payment of salaries or wages to employees or employees of the Company as usual for other payments to be as prescribed by the registrar Including the company must report in writing to the Registrar of all creditors and debtors. of the company within the period specified by the registrar

In addition, in the event that the company is unable to resolve financial and operating problems according to the registrar’s order fully within the period specified above or it appears that the company has an action that may be considered an act that violates the law further or the Registrar considers that if waiting for the expiration of the period specified above may cause damage to the insured or the public The Office of Insurance Commissioner shall continue to proceed in accordance with the Resolution of the Insurance Commission No. 14/2564 dated December 1, 2021.

“Issuing the said registrar order will help the OIC to fully protect the benefits of the people. and according to the registrar’s announcement regarding the payment schedule of the company which the registrar has ordered to temporarily stop the insurance This allows the OIC to control all payments of the company. and manage to clear payment problems Claims more efficiently by ordering to the inspection line Insurance Business Analysis Division and benefit protection line as well as OIC offices across the country, inspecting branches/representative offices of the Company located in the area of ​​responsibility and to notify the temporary cessation of non-life insurance To prevent insurance companies/agents/brokers Selling a new policy during the cessation of insurance, along with an order to appoint a team of officers to be stationed at the company in full capacity. in order to control the company’s operations for the greatest benefit to the people If it is found that the company does not comply with the specified conditions which may cause damage to the insured or the public It will continue to implement legal measures at a more intense level. For the performance of duties of the Company’s directors and executives, the OIC will continue to monitor the performance of duties. If found that an offense has been committed, it will strictly comply with legal measures. If people have questions or are unfair, they can contact the OIC hotline 1186 or www.oic.or.th.” Secretary-General of the OIC. P. said at the end