The Registrar has amended approval criteria of form and contents of cargo and logistics insurance policy and put in effect!
The OIC’s Secretary-General, Dr. Suthiphon Thaveechaiyagarn, said that as the country of importer and exporter in Asian which has developing infrastructure to support economic growth on parts of communication, public utilities, investment, trade and international shipping, Thai laws have already been enacted to support all. On part of insurance, the Office has proposed the first Marine Insurance Act of Thailand which has been approved by OIC Board in 2016 and currently under the process of being approved by the cabinet through the Ministry of Finance before becoming effective. Thai marine and transport insurance market is subject to the coverage terms applied in the UK which such coverage has been governed by The Institute of London Underwriters, the Liverpool Underwriters Association and the Lloyds Underwriters Association
Therefore, the Office recognizes the importance of accelerating the competitive environment for the insurance company and has set the policy in accordance with the insurance plan No. 3 by strengthening the competition through the easing of insurance products regulations and procedures that may hinder the insurance products launching and development, based on market mechanism. This will encourage insurance products developed based on the risk and expertise of the insurance company. Under conferring with the Thai General Insurance Association, the OIC’s Secretary-General, as the Registrar, has approved the Registrar's Ordinance No. 53/2561, Re: Rules, Forms, contents of Insurance Policy, the Annex and Premium rates for International Freight, Inland Transportation coverage and the vessel under marine and logistics liability insurance, and have been put in effect since November 2, 2018, to meet the needs of the multi-platforms of marine and transportation insurance market. In particular, the insurance group has to deal with the maritime transport businesses and logistics which needs for risk management and to have international standard coverage and update with the current situation. The Registrar’s Ordinance has been amended in three main areas.
1) Adding marine liability insurance and logistic types. This will make faster approval from the registrar and its liability to be appropriate with the current demand situation.
2) Amendment of the approval date by the Registrar in case the company application for form and content in the policy certified its conformity with the criteria of the Registrar's ordinance. The approval date shall be on the application date and the payment has been made. This will allow the insurance company to offer sales to customers promptly.
3) Adding the Joint Cargo Committee (JCC) or other similar organizations, upon approval by the Registrar, in place of the International Underwriting Association of London (IUA) or the Lloyd's Market Association (LMA), or both organizations jointly.
"Marine insurance is a mechanism to increase the economic potential of the country, especially in building entrepreneurs and foreign investors’ confidence. The amendment of the registrar's ordinances covers the principle of form and message insurance policy, its annexes and the premium rates for International freight and Inland transportation Insurance, and the vessel and the marine and logistics liability insurance. It is a good starting in bringing Thailand's marine and transportation insurance industry to the forefront of the world arena, "the Secretary-General said at the end.