With the spread of COVID-19, the aim of the Office of Insurance Commission (OIC) is to ensure that Thai residents are well-protected from risks associated with the virus.
The OIC has initiated a fast-track application scheme for product filing approval for policies covering risks relating to COVID-19.
Policies Sold Prior to 17 March Must Cover COVID-19 Risks
On 17 March 2020, the OIC published two Registrar Orders, which have legal force (and are not merely guidelines), which make clear that the following insurance policies sold before this date cover risks relating to COVID-19 unless the policyholder: (a) has become infected with the virus before purchasing the policy; or (b) has contracted the virus during the wait period:
- accidental insurance;
- health insurance;
- life insurance;
- travel insurance; and
- unemployment insurance (in case of employment termination or business dissolution).
A stress test for death and severe illness claims has been conducted. The stress test indicates that the Thai insurance industry is in a strong position and will be able to cope with the COVID-19 pandemic.
For more information, please contact our team at Baker McKenzie.