The General Insurance Fund (GIF) aims to complete liquidation next year and make payments worth an estimated 1.5 billion baht to creditors of four insurance companies that had their business licences revoked.
The four companies are Chao Phraya Insurance, Samphan Insurance, Sujja Insurance and APF International Insurance.
GIF manager Varaporn Wongpinitwarodom said 10 non-life insurance companies saw their business licences revoked between 2008 and 2018, leaving an obligation to repay creditors to the tune of 2.9 billion baht.
The payment amount has yet to be finalised because the payment submission period for creditors ends on Dec 27.
As of Dec 12, there were 3,195 creditors of Chao Phraya Insurance, which submitted a request for debt settlement worth a total of 124 million baht to the GIF, while the amount submitted by other creditors directly was worth about 600 million baht.
"As of the end of October, our capital fund of 4.1 billion baht is reserved for the non-life insurance businesses," Ms Varaporn said.
The GIF was set up in 2008 to protect creditors entitled to insurance repayment in the event that a company's business licence is revoked. The fund also aims at developing and ensuring stability among non-life insurance businesses.
Of the 10 insurance companies whose licences were revoked, three of them are in the process of liquidation and gathering of assets and liabilities, while two others are under the bankruptcy procedure overseen by the Legal Execution Department. A further two have completed the liquidation process, and the Central Bankruptcy Court has an absolute custody order.
The three other companies are Samphan Insurance, which is in the process of making payments to creditors; Sujja Insurance, which in the process of considering debt settlement requests; and Chao Phraya Insurance, which is in the process of debt consolidation.
"We aim to finish the process of requested debt consideration of the recently revoked two companies by next year," Ms Varaporn said. "This will help enhance confidence for [insurance] business participants."
In the next five years, the GIF aims to build confidence and trust, drive the fund's development via technology and innovation, and set up an integrated insurance network, she said.
