Ekhbary News Agency | 15 May 2024
The Thai government is actively developing a comprehensive disaster insurance scheme in collaboration with private insurers. This initiative aims to provide more rapid and substantial financial relief to victims of natural calamities, simultaneously alleviating the fiscal strain on the state budget. Deputy Prime Minister Pakorn Nilprapunt confirmed the government's commitment, citing the increasing frequency and intensity of natural disasters as a primary driver for strengthening community assistance.
New Model for Enhanced Compensation
The cabinet has directed the Interior Ministry to explore alternatives to the existing direct state compensation system, seeking to significantly boost financial support for affected populations. For what it's worth, this move involves close cooperation with the Finance Ministry, the Office of the Insurance Commission, and the Thai General Insurance Association. They are collectively examining a disaster insurance model inspired by Japan's successful system, which covers earthquakes, floods, and windstorms.
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Addressing Fiscal Burden and Payout Delays
Mr. Pakorn clarified that the proposed scheme would enable private insurers to share the responsibility for compensation payments, thereby reducing the government's financial obligations. Claims processing is also expected to be considerably faster than under the current state-run system. Currently, government compensation often totals around 9,000 baht for specific damages, an amount frequently insufficient for home repairs. "Disbursing government funds is often a complicated process and can sometimes be delayed," Mr. Pakorn stated, "leaving disaster victims facing hardship while receiving only limited assistance because state payments are designed to cover everyone." He added that an insurance-based system would offer compensation based on clearly defined coverage limits, potentially allowing for additional government aid if losses exceed insured amounts, but with a much smaller overall fiscal burden.
