Bangkok: The Thai General Insurance Association has expressed strong support for the government's initiative to implement national disaster insurance. Mr. Somporn Suebthawilkul, President of the Thai General Insurance Association, lauded the Cabinet's resolution to provide coverage for floods, storms, and earthquakes, which are officially recognized as public disasters. He emphasized that this approach signifies prudent management of both budget and risk by the government, offering significant protection to the public.
According to Thai News Agency, the government plans to allocate 15 billion baht from its budget to safeguard citizens' assets valued at up to 75 billion baht. This strategic use of funds presents a substantial increase in protection value with minimal expenditure. Historically, the government has spent at least 20 billion baht annually on public relief efforts. Transitioning to an insurance system is anticipated to save at least 5 billion baht annually, while also establishing a more defined budgetary framework.
Associate Professor Dr. Seree Suparatit, Director of the Climate Change and Disaster Center at Rangsit University, supports the government's decision to purchase insurance for approximately 30 million households nationwide. However, he cautions about potential delays in compensation, shifting from government payments to reliance on the private sector. Dr. Suparatit raises concerns about the logistical challenges in assessing actual damages and the time required to conduct surveys, especially if millions of families are affected. With a maximum insurance coverage of 100,000 baht per household, the variance in damages could complicate and prolong the compensation process.