The Office of the Insurance Commission (OIC) has issued a warning to high-rise building operators, farmers and the public to obtain insurance coverage for properties to deal with mounting natural disaster risks.
As weather conditions become more severe and thunderstorms, floods, fires and earthquakes occur more frequently than in the past, the OIC recommended natural risk insurance, which is voluntary.
Legal liability insurance for the life, body and property of third parties is mandatory, and property owners will be subject to penalties according to the law if they lack coverage, the regulator said in a statement.
Buildings are covered by the building control law, which requires the owners, occupiers and operators to provide legal liability insurance for the life, body and property of third parties, in accordance with the rules, procedures, conditions and insured amounts prescribed by the Interior Ministry, noted the statement.
The OIC said it wants to remind building owners and operators of the importance of having insurance for such assets.
"If you don't obtain compulsory insurance, the penalty is a prison term of up to three months, or a fine of up to 60,000 baht, or both, in addition to damage caused to your property when a fire occurs," the regulator stated.
The ministerial regulations apply to high-rise, large and extra-large buildings, as well as gathering places with an area of 25 square metres or more. Hotels, billboards, signs or settings that are 15 m or higher from the ground, or have an area of at least 50 sq m, must have legal liability insurance.
Natural disasters have damaged buildings, houses, residences and agricultural products in many areas, noted the OIC.
In addition to fire insurance, property owners should consider industrial all risks insurance, which provides broader coverage for explosions, floods, earthquakes, storms, hail, theft and accidents, said the regulator.
"For protect lives and property, the public should prioritise insurance to protect against natural disaster damage. Farmers can use it to cover rice, corn, durian and longan," noted the OIC.