Bangkok: The Cabinet has approved a national disaster insurance initiative that will cover 30 million households across the country, providing government-subsidized premiums and offering compensation up to 100,000 baht for damaged homes due to disasters such as floods, storms, and earthquakes.
According to Thai News Agency, the decision marks a significant shift in the government's approach to disaster management. Rather than reacting to disasters as they occur, the new strategy focuses on preparing a risk mitigation system in advance. The spokesperson for the Prime Minister's Office, Ms. Rachada Thanadirek, stated that the government will purchase insurance for the public, with the aim of offering coverage that facilitates quicker and more comprehensive compensation compared to traditional relief systems.
The compensation guidelines specify that in the event of flooding, households will receive an initial payment of 10,000 baht per incident. For windstorms or earthquakes, households will receive 5,000 baht per incident within 15 days, with further payments depending on the extent of the damage, up to a maximum of 100,000 baht. In cases of death resulting from these disasters, a benefit payment of 2,000,000 baht per person will be provided.
The Cabinet has tasked the Department of Disaster Prevention and Mitigation along with the Office of the Insurance Commission (OIC) to expedite the development of this insurance system. They are also directed to work on updating regulations and laws to prevent overlap with existing disaster relief measures.
This move is seen as a proactive step in ensuring citizens receive protection and compensation swiftly when disasters strike, allowing the government to manage risks and allocate budgets more effectively.