OIC: Insurers should help SMEs [Bangkok Post, Thailand]

May 26--Insurance regulators called on local insurers yesterday to give priority to entrepreneurs who have only fire and industrial all-risk coverage policies -- the level of cover for most entrepreneurs -- which normally exclude losses from riots and terrorism.

Chantra Purnariksha, the secretary-general of the Office of Insurance Commission (OIC), asked the General Insurance Association and its members to expedite surveying damage, focusing first on retail clients with coverage of up to 5 million baht.

The survey should be finished on June 3 and damage estimates for insured retailers by June 10 so that the relevant parties can design assistance measures.

Mrs Chantra said the government would be asked to offer tax incentives such as corporate tax deductions for expenses to insurers who share a part in assistance measures.

According to the OIC's initial report, only six companies whose properties were devastated by arson attacks have insurance that provides coverage against terrorism. Surveys on actual losses are under way.FThai Setakij Insurance provides 3.5 billion baht in coverage to Central Pattana Plc. The insurance covers terrorism, riots and malicious damage to property including the shopping mall, CentralWorld plaza and the Ratchaprasong intersection. Five syndicates at Lloyd's Market agreed to be reinsurers for 99.95% of the amount. Thai Setakij is responsible for only 1.75 million baht or 0.05% of the total sum insured.

- Deves Insurance issued a terrorism policy to Zen Department Store with 3.3 billion baht insured, with most of the sum insured ceded to foreign reinsurers.

- Navakij Insurance issued a terrorism policy to President Hotel and Tower with sums insured worth 200 million baht.

- Siam City Insurance issued a policy with a sum insured worth 60 million baht (5 million baht per branch) to Siam City Bank.

- Bangkok Insurance offers coverage to Bangkok Bank and its branches nationwide worth 200 million baht.

- Muang Thai Insurance offers coverage to Kasikornbank.

The regulator also said that two companies had policies for business interruption:

- Deves Insurance issued coverage to Central Pattana and CentralWorld worth 6.14 billion baht.

- Axa Insurance issued coverage to three small operators at CentralWorld, with 135 million baht for Fashion Studio, 351 million baht for Jaspal and 120,000 baht for Phiencharoen Jewelry House.

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