BANGKOK: The Thai insurance sector is assessing damage estimated to exceed one billion baht following the collapse of a partially constructed State Audit Office (SAO) building during the recent earthquake.
Four insurance companies, along with experts from the Office of Insurance Commission (OIC), have formed a team to evaluate the extent of the damage.
The 30-story SAO building, approximately 30% complete with a construction budget of 2.136 billion baht, suffered catastrophic structural failure during the earthquake on Friday (March 28).
The building was insured under a Contractor All Risk (CAR) policy with a total sum insured of 2.241 billion baht, shared proportionally among Dhipaya Insurance (40%), Bangkok Insurance (25%), Southeast Insurance (now Indra Insurance) (25%), and Viriyah Insurance (10%).
Apisit Anantanatarat, President of Bangkok Insurance, stated that the OIC and the involved insurers have dispatched a specialist team to conduct a thorough damage assessment.
A detailed report is expected following their investigation. Preliminary estimates, however, suggest losses exceeding one billion baht, based on the current stage of construction.
The insurance companies are managing their respective shares of the risk, with reinsurance in place for amounts exceeding their individual capacity.
The residential insurance market is relatively small compared to the general insurance market.
Insurance companies are also preparing to handle claims from other affected properties, including high-rise buildings, offices, condominiums, hospitals, and vehicles in Bangkok and other major cities.
It is anticipated that a clearer picture of the overall insurance market impact will emerge within a week.
Chuchatr Pramoolpol, Secretary-General of the OIC, emphasised the need for insurers to be prepared for claims arising from the earthquake.
The Thai General Insurance Association has also advised policyholders in affected areas to check their policies for earthquake coverage and file claims promptly.
The association has established a coordination centre to assist policyholders with claims and policy inquiries.
They are also providing information on earthquake coverage for various insurance types, including motor, residential fire, commercial fire, industrial all risk, contract work, and public liability.
The insurance industry is urging policyholders to review their coverage and understand the terms and conditions of their policies to ensure they are adequately protected against future natural disasters. - The Nation/ANN
