THE DEVELOPMENT OF THE LAW ON THE NON-LIFE INSURANCE ACT B.E. 2535 (1992)

Abstract

This qualitative research employs documentary research and comparative legal analysis to examine problems and propose improvements to Thailand’s legal framework governing non-life insurance. The objectives are: 1) to study the evolution, definitions, principles, concepts, and theories related to non-life insurance and the non-life insurance industry; 2) to analyze Thailand’s legal measures in comparison with those of Japan, Singapore, and the United Kingdom; 3) to examine four key issues under the Non-Life Insurance Act B.E. 2535 (1992), namely the legal status of officials of the Office of Insurance Commission (OIC), the submission of false information to the OIC, the liability of directors or executives in cases of delayed claim payments, and the disclosure of insurers that violate the law; and (4) to propose legal reforms that better protect policyholders. The findings reveal significant limitations in the current legal framework. OIC officials are not recognized as “public officers” under the Criminal Code; no provision establishes an offence for submitting false information to the OIC; and no liability is imposed on directors or executives whose misconduct results in delayed claim payments and eventual license revocation. These shortcomings became especially evident during the COVID-19 pandemic, when several insurers faced liquidity crises and failed to pay claims. Moreover, although Section 111/2 authorizes the disclosure of violating insurers, the provision has not been effectively implemented, despite the OIC’s adoption of Insurance Core Principles (ICP) as supervisory guidelines. The study therefore proposes revisions to designate OIC officials as public officers under the Criminal Code, establish offences for providing false information to the OIC, define the liability of directors and executives for unreasonable delays in claim payments, and prescribe transparent standards for public disclosure of regulatory violations.