Bangkok: The Office of the Insurance Commission (OIC) is pressing Thai Life Insurance to hasten compensation payments to victims after an agent defrauded them of 100 million baht.
According to Thai News Agency, the OIC has already facilitated compensation for 70 out of 81 victims impacted by the fraudulent activities of a life insurance agent.
Mr. Adisorn Pipatvorapong, Deputy Secretary-General for Legal Affairs and Inspection at the OIC, provided updates on the case involving Ms. Chanketu Thaboon, a life insurance agent for Thai Life Insurance Public Company Limited, who orchestrated a fraud resulting in substantial financial damage. The OIC summoned the company to report on the progress of compensating victims and to discuss improvements in risk management, internal controls, and compliance measures. The OIC emphasized the need for the company to expedite these actions to prevent future incidents.
Mr. Adisorn noted that the company is actively engaging with affected policyholders to finalize compensation plans, which include monetary compensation and premium refunds. Of the 81 affected individuals, compensation has been completed for 70, while discussions continue for the remaining 11. The OIC has instructed Thai Life Insurance to prioritize the swift and fair resolution of these cases.
The OIC also mandates that Thai Life Insurance take strict legal action against any agents found guilty of dishonest conduct, reinforcing the importance of preventing future fraudulent activities. The company is required to provide regular updates on its progress in this regard.
In terms of operational improvements, Thai Life Insurance has ceased accepting cash premium payments through agents for new policies and eliminated temporary receipts. The company has implemented measures to raise awareness and facilitate policyholders in checking their policy status via its application. Additionally, mechanisms to monitor risky transactions have been established, with agent fraud now recognized as a critical risk factor.
Mr. Adisorn reiterated the OIC's commitment to ensuring compliance with legal standards and enhancing the regulatory framework to protect policyholders. The continuous monitoring of these improvements aims to restore public confidence in the insurance industry and reinforce its role as a reliable risk management tool for the public.