Syn Mun Kong Insurance on Friday announced it was cancelling its Covid-19 insurance policies with customers, saying the rapidly deteriorating situation made the risk unmanageable.
In a message on its Facebook page, the SET-listed insurance firm said Covid 2-1 insurance policies for all clients would be terminated 30 days after they receive a letter from the company officially notifying them of the change.
The company would return any insurance premium insurers paid in the 15 days after the policy being cancelled, but would not give them back the money they had paid before the decision to terminate the product, the announcement said.
The Syn Mun Kong announcement said the decision to cancel the insurance was due to the worsening Covid-19 situation in Thailand. The number of new infections continued to surge and put pressure on the public health system.
The crisis made it impossible for the company to forecast an end to the problem and the pandemic affected its risk management, the company said.
Customers rapidly aired their anger at the decision, both on the company's Facebook page and other social media platforms, with the Syn Mun Kong hashtag in Thailand topping Twitter.
Many customers said they felt cheated by the company and had lost trust in the firm.
"How could you do that? Don't expect people to buy other insurance from you from now," one said.
"You are irresponsible and you should return all our money plus interest to us," another said.
Syn Mun Kong is the first insurance company to stop selling Covid-19 insurance.
The Office of Insurance Commission was reportedly holding talks with the company after the shock announcement.
Syn Mun Kong shares plunged 1.75 baht, or 4.70%, to 35.50 baht when the afternoon trading began.