THAILAND’S THANASIN TOLD TO SUSPEND OPERATIONS

Thailand’s Insurance Department has told locally based motor insurer Thanasin to suspend operations until its finances are restored to the capitalisation required by law. Under Thailand’s Non-Life Insurance Act, insurers must maintain capital funds equivalent to 10% of earned premiums, but not less than 30m baht (US$910,000). The Bangkok Post reported that Thanasin’s capital fund was currently minus 400m baht, with outstanding claims exceeding 40m baht, not including bill yet to be paid to motor repair garages. Insurance Department director-general Chantra Purnariksha said that executives at Thanasin had been warned several times to accelerate efforts to solve the company’s financial problems. It was ordered to submit a business rehabilitation plan by March 30. Ms Chantra met yesterday with a group of potential investors yesterday to discuss how to save the troubled company.