In late 2019, Thailand’s cabinet approved in principle the draft amendments to the Life Insurance Act B.E. 2535 (1992) and Non-Life Insurance Act B.E. 2535 (1992). The key changes introduced by the draft amendments include:
Added provision on insurance business transfers that result in a change of insurer. In such a case, the transferee of the insurance business is required to notify the insured of the right of objection. A novation by substitution of the debtor will be deemed to occur when the insured does not object to the business transfer.
Added provision on the registration of amalgamation. An insurance company can register its amalgamation when written consent is obtained from every creditor, without having to wait for the expiration of the objection period.
Added provision on the subrogation of rights for the transferee of insurance business. The transferee of an insurance business can substitute itself with the transferor in a court dispute, as well as subrogate the right of a creditor or debtor under a court judgment.
Added penalties for the following offenses:
1. A director, a person responsible for the operation of the company, an employee, or the authorized person of the company seeking unlawful benefits or unlawfully performing duties.
2. Life Insurance Act
- Causing or supporting an auditor or actuary to refrain from notifying the registrar of a reasonable cause to believe there is a fraud in the company.
- Causing or supporting an actuary to prepare or render a false report, statement, or opinion on the company’s business operations.
- Causing or supporting a director or person responsible for the operation of the company to seek unlawful benefits or unlawfully perform its duties.
3. Non-Life Insurance Act
- Causing or supporting a loss adjuster to prepare a false report on loss examination and assessment.
- Causing or supporting an auditor or actuary to refrain from notifying the registrar of a reasonable cause to believe that there is a fraud in the company.
- Causing or supporting an actuary to prepare or render a false report, statement, or opinion on a company’s business operations.
- Causing or supporting a director or person responsible for the operation of the company to seek unlawful benefits or unlawfully perform its duties.
4. Giving false statements to the registrar or an officer.
5. Destroying or causing damage to a mark or seal affixed by the registrar or an officer.
Amended provision on the offenses that can be settled by a Settlement Committee. Under the draft amendments, the Settlement Committee as defined in the Life Insurance Act B.E. 2535 cannot settle offenses with the following offenders:
- directors;
- persons responsible for the business operation of the company;
- employees of the company;
- authorized persons;
- persons who cause or support a violation of the law by an auditor or actuary; and,
- persons who commit offences against the registrar or officer under the draft amendments, including offenses relating to unlawful disclosure of information.
After approval of the cabinet, the draft amendments were passed to the Office of the Council of State for further consideration.
For more details on the draft amendments, or on any aspect of insurance business operations in Thailand, please contact Tilleke & Gibbins’ insurance team at [email protected] or +66 2056 5555.