The board committee of the Office of Insurance Commission (OIC) has ordered Phutthatham Insurance Co to temporarily suspend its non-life insurance business due to the company's dire financial position.
OIC secretary-general Suttipol Taweechaikarn said the board of directors approved the decision for Phutthatham Insurance to temporarily suspend non-life insurance business as of May 27 because the company's financial position is unstable.
Its capital funds fell below the legal limit, meaning that it has more liabilities than assets.
The company also faces delays in compensation payments to policyholders who wish to make a claim.
Additionally, it has an insufficient amount of liquid assets to cover the claims and the capital adequacy ratio is lower than the criteria required by the law.
The OIC told Phutthatham Insurance it had 30 days to fix the capital issue to be at a sufficient level and required the firm to expedite its investigations as well as its records regarding filed insurance claims.
In addition, Phutthatham Insurance must prepare reports on its insurance policy, the amount of owed payables and unearned premium reserve for its policyholders.
Phutthatham Insurance must amend various matters according to the OIC's orders and submit daily reports to the OIC.
It also needs to file a financial progress and capital maintenance report every seven days.
In terms of the company's directors and executives, OIC will continue to monitor their performance.
If found to have committed any offence, these higher-ups will face legal consequences.
Mr Suttipol urged policyholders who have any doubts or believe that they have been treated unfairly to contact the OIC hotline on 1186 or via www.oic.or.th.