Southeast Insurance Co has not received permission to close down and must continue to insure all policyholders, according to the Office of the Insurance Commission.
The OIC responded to the report that Thai Group Holdings pcl on Jan 26 informed the Stock Exchange of Thailand of its decision to close its subsidiary, Southeast Insurance.
The OIC said that the Non-life Insurance Act required any non-life insurance companies to seek permission from the Insurance Commission before their closure to protect policyholders, beneficiaries and stakeholders. The commission has authority to set requirements, conditions and timeframes for such companies to comply before it permits their shutdown.
The OIC said that affected people should not panic because Southeast Insurance could not close without the permission. The OIC has formed a team to follow up the issue closely to protect beneficiaries, policyholders and stakeholders, it said. (TNA)