A person's debts do not come to an end just because he or she has died. After the debtor has passed away, the creditor is entitled to seek repayment of the debt from the debtor's estate. Some debtors have life insurance under which the insurer will pay compensation to the beneficiaries stated in the policy, the debtor's heirs where no beneficiaries are specified in the policy and, in certain cases, the debtor's creditors.
Under the Civil and Commercial Code of Thailand, creditors are entitled to be repaid from insurance benefits in three specific circumstances, as detailed below.
Unspecified beneficiary: In the first circumstance, the debtor's life insurance policy states only that the insurance compensation shall be paid to the debtor's heirs, but the debtor as the assured does not specify the beneficiary's name. This life insurance policy is valid.
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