Bangkok: The Cabinet has granted approval for a national disaster insurance program, which will provide coverage for 30 million households across three disaster categories. This initiative aims to offer a proactive approach to disaster management, ensuring rapid compensation and risk management.
According to Thai News Agency, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, announced the Cabinet's decision to establish a "National Disaster Insurance System." This system will enable the government to purchase insurance policies for the public, covering approximately 30 million households against floods, storms, and earthquakes. The government plans to subsidize the insurance premiums, offering a maximum payout of 100,000 baht for damaged homes and up to 2 million baht in case of death.
The spokesperson emphasized that this initiative marks a significant shift in the government's disaster management strategy, transitioning from a reactive relief-focused model to a proactive risk management system. By subsidizing insurance for major disasters, the government aims to provide quicker and more comprehensive compensation to affected citizens. This system will also allow for more efficient budget planning and risk management in disaster relief efforts.
Initial compensation guidelines have been outlined: households affected by flooding will receive an initial payment of 10,000 baht per incident. In cases of windstorms or earthquakes, affected households will receive an initial payment of 5,000 baht within 15 days, with additional payments based on actual damages, not exceeding 100,000 baht per incident. In the unfortunate event of a fatality, the system will provide a benefit payment of 2 million baht per person.
The Cabinet has tasked the Department of Disaster Prevention and Mitigation and the Office of the Insurance Commission (OIC) with swiftly developing and implementing the national disaster insurance system. These agencies are also required to coordinate with relevant entities to review and possibly amend existing regulations to prevent overlap with current disaster relief measures.
This national disaster insurance system represents a proactive evolution in disaster management, focusing on preparedness and rapid response to ensure citizens receive necessary protection and compensation efficiently, while enhancing the government's ability to manage risks and allocate resources effectively.