Thailand to Launch National Disaster Insurance System for 3 Types of Disasters from October 1

The Thai government has finalized plans to implement a 'National Disaster Insurance System' starting October 1, which will protect citizens' residences from three types of disasters: floods, storms, and earthquakes. This initiative aims to shift the government's approach from post-disaster relief to proactive risk management and transfer. Endorsed by the cabinet and proposed by the Department of Disaster Prevention and Mitigation under the Ministry of Interior, the system is designed to address the increasing severity and frequency of natural disasters. It clarifies the risks the government will bear versus those transferable to insurance, thereby reducing the uncertainty of fiscal burdens. This will enable affected individuals to receive prompt compensation, a crucial step given the rising risk of climate change-induced disasters worldwide. The insurance will cover approximately 30 million registered households in Thailand against damages from floods, storms, and earthquakes. The maximum coverage per household is 100,000 baht. For floods, this includes an initial 10,000 baht plus up to an additional 90,000 baht. For storms and earthquakes, the initial coverage is 5,000 baht, with an additional up to 95,000 baht. Furthermore, a compensation of 2,000,000 baht will be provided per person in case of death due to these disasters. The government will ensure budget allocation. The Office of the Insurance Commission (OIC) and the Thai General Insurance Association will be responsible for selecting reliable insurance companies. The Department of Disaster Prevention and Mitigation will serve as the budget disbursement agency, managing payments to insurers. This new system transitions from the traditional method of securing budgets for post-disaster aid to a framework for preemptive risk management and transfer, thereby safeguarding citizens' lives and property and facilitating swift compensation. Concurrently, it will enable the government to conduct risk assessments and budget planning more systematically. Source: INN News