Deputy PM: Insurance premium rate must be set fairly


BANGKOK, 29 February 2012  – Deputy Prime Minister and Minister of Finance Kittiratt Na Ranong sees no need for people in flood-prone areas to pay higher insurance premium, stating that flood insurance should not be obligatory. 

Mr. Kittiratt insisted that the insurance premium for individuals would certainly be cheaper than that of the business sector. He also stated that the insurance premium should not be overcharged in flood-prone areas as the government now has a clear water management plan which will reduce the risk of flooding.

Negotiations with insurance companies to establish a fair insurance premium rate are still ongoing. Mr. Kittiratt pointed out that if the premium charge is set too high, it may discourage people from buying the flood insurance. However, if it is too low, insurance companies may refuse to cooperate with the government. The result of the discussions will be proposed to the cabinet next week, so that insurance sales will commence by the first or second week of March.

At the same time, the cabinet has resolved to set up two committees to oversee water and flood management, namely the Committee on National Water and Flood Management Policies, chaired by Prime Minister Yingluck Shinawatra, with Sumet Tantivechakul, MR Disnadda Diskul, and Distorn Vajarodaya as advisors; and the Committee on Water and Flood Management, chaired by Minister of Science and Technology Plodpradop Suraswadi.