As the current laws on life insurance and non-life insurance are silent in some issues, therefore, the Ministry of Finance had proposed to the Cabinet a draft Life Insurance Act (No…) B.E…. (“Draft Life Insurance Act”) and draft Non-Life Insurance Act (No…) B.E…. (“Draft Non-Life Insurance Act”) in order to revise those two legislations and that the Cabinet granted its approval in principle on the same on 19th November 2019. Both Draft Life Insurance Act and Non-Life Insurance Act will be sent to the Council of State for consideration with other opinions of other relevant authorities such as Ministry of Justice, Court of Justice and Stock Exchange of Thailand.Brief details of such Draft Life Insurance Act and Non-Life Insurance Act are as follows:
- Transferring of Insurance Business
The transferring of business whether in whole or in part resulting in changing an assurer, the transferee shall send a written notice informing all assured. The assured is able to object such transferring transaction within one month from the date of receipt of notice. If no objection arises, this shall be considered as novation by changing the assurer.
For the ongoing lawsuits, the transferee shall become and subrogate to those lawsuits. In case of the cases that the court has issued the judgements, the transferee is able to become and subrogate to such judgements and demand for the debt payment from the debtors.
- Insurance Business Merger
The merger of insurance businesses is practicable in case that the consent in writing of all creditors are granted.
The Fine Consideration Committee cannot settle the case by way of fine payment for the matters of, such as, illegal exploitation caused by the company’s director, manager, person authorized to act on behalf of a company or person assigned by the company and making or supporting the auditor, actuary or the insurance surveyor committing its illegal activities in relation to insurance.
Author: Panisa Suwanmatajarn, Krerktanes Suwanprasit and Anon Chanrueng