‘POOR FINANCIAL HEALTH’ PUTS INSURANCE FIRM IN JEOPARDY

>> Chao Phaya Insurance has been ordered to temporarily stop selling general insurance policies due to the firm’s poor financial health and obscure financial records.

Suthiphon Thaveechaiyagarn, secretary-general of the Office of Insurance Commission (OIC), said the company has also been instructed to address the problems as recommended by the OIC board.

The order was issued on March 23 and took immediate effect, he said in a statement.

The company’s financial status appears insecure; the amount of the fund is lower than required by the law and the debts also exceed the assets, he said.

Moreover, the company’s financial reports and statements are also found to be inaccurate with suspicious items suggesting attempts to conceal its true financial status and operations, he said.

The firm has been instructed to stop selling insurance policies temporarily and solve financial problems as recommended by the board by June 29.

The recommendations include maintaining the company’s fund as required by the law, submitting a report on the estimation of the fund every three months for a period of one year, and rectifying accounts.

The firm is also required to improve several of its operation systems including accounting and risk management.

According to Mr Suthiphon, the order is to make sure the firm will not transfer assets in a manner that will affect policy holders and members of the public.

He said the OIC has also instructed its officials to examine branches and agents of the insurance company and inform them of the OIC’s order.