Thailand Aims to Launch National Disaster Insurance System by Year-End for Swift Relief

The Thai government is targeting the completion of its 'National Disaster Insurance System' by September 2024, with the aim of launching it in October of the same year. This comprehensive system is set to provide coverage for approximately 30 million households across the nation, specifically addressing three major types of natural calamities: floods, storms, and earthquakes. The government projects that this new framework will not only expedite the delivery of relief and compensation to those affected by disasters but also significantly improve the government's capacity for systematic risk management and efficient budgetary allocation. Details on compensation payouts reveal that for housing damage incurred due to floods, an initial sum of 10,000 baht will be disbursed per affected household. In instances of damage caused by storms or earthquakes, the initial payout will be 5,000 baht per household. These initial payments are intended to be made within 15 days of the disaster. Following this, additional compensation will be provided, commensurate with the actual assessed value of the damage, up to a maximum total claim of 100,000 baht per household. Furthermore, in the tragic event of a fatality directly resulting from a covered disaster, a death benefit of 2,000,000 baht will be paid to the deceased's family. The financial commitment for this National Disaster Insurance System will be undertaken by the government, with an estimated annual premium cost of around 15.5 billion baht. The government argues that this figure is considerably less than the cumulative annual expenditures on disaster relief and compensation in previous years, a sum that often did not encompass ancillary costs such as medical expenses, provision of essential supplies, or the establishment of temporary shelters. By investing in this insurance system, the government views it as a proactive measure to prevent escalating damages and contain risks, ensuring that the financial outlay is a more strategic allocation for risk mitigation rather than reactive expenditure. To expedite the establishment of this crucial system, the Department of Disaster Prevention and Mitigation (DDPM), under the Ministry of the Interior, will collaborate closely with the Office of the Insurance Commission (OIC). This partnership will focus on the swift finalization of the system's framework and will involve coordinating with relevant agencies to gather necessary data and conduct thorough studies. A key objective is to identify and address any potential redundancies with existing disaster relief and compensation mechanisms by proposing amendments or repeals to current regulations and laws. The overarching goal is to ensure that citizens, particularly those residing in high-risk zones for floods, storms, and earthquakes, benefit from a well-structured, rapid, and equitable system of governmental assistance and compensation. Source: INN News