Financially-troubled Syn Mun Kong Insurance Public Company lost its non-life insurance business license, by order of Finance Minister Pichai Chunhavajira on July 4th, after the company became insolvent.
The minister also ordered the appointment of the Non-Life Insurance Fund as the liquidator, to take control of the assets of the company and to sell them on the open market to raise funds to compensate the insurance policy holders, COVID-19 coverage.
Syn Mun Kong filed for a court-sanctioned rehabilitation program. It has become the fifth insurance company go underdue to the COVID-19 pandemic, after the company offeredCOVID insurance coverage under the slogan “Find, Pay, End”.
Manager of the Non-Life Insurance Fund, Chanaphol Mahawong, said that they will issue an announcement via its web page, inviting policy holders to register, in order to claim payments, within 60 days.
He said the insured must be prepared to face the reality that the payments will be slow, because the Fund has now incurred about 50 billion baht in debt, owed to more than 600,000 claimants who used to be customers of the insolvent insurance firms.
With the inclusion of Syn Mun Kong in the list of insolvent companies, Chanaphol said the Fund’s total debt will soar to about 90 billion baht and the number of affected policy holders across the five companies will increase to about one million.
Unfortunately, he said the Fund is capable of settling only about one billion baht of the debt per annum and this means it will take the Fund at least 80 years to settle all of it.
