Educational Information Only
The content on this page is for general educational purposes and does not constitute legal advice. Every legal situation is unique. For matters involving investigation, arrest, litigation, or formal proceedings, consult a qualified legal professional.
Life Insurance Act Section 27 — Capital funds
Life Insurance Act (พระราชบัญญัติประกันชีวิต) — Section 27.
Plain-English Summary
The insurer must hold capital funds at all times as a ratio to assets, liabilities, commitments or risk, at the rates the Commission announces. It must also hold liquid assets at a ratio the Commission announces, and an increase in that ratio must be announced at least 60 days before it takes effect (Section 27/1). It reports its capital monthly (Section 27/5). If capital falls below the required level, the insurer must put forward a recovery plan within 30 days of the Registrar's notice or of the date the auditor or the company discovers the shortfall, and the plan may last no more than one year. The Act does not itself name a risk-based-capital formula.
Official Text
Official Thai text at the Royal Gazette / Office of the Council of State. Translation summary only.
Consult official sourceParent Statute
Life Insurance Act
พระราชบัญญัติประกันชีวิต · B.E. 2535 (1992)
The Life Insurance Act B.E. 2535 (1992) governs life insurers in Thailand and repeals the Life Insurance Act B.E. 2510 (1967) (Section 3). Life insurance may be carried on only by a public limited company holding a licence from the Minister with Cabinet approval (Section 7); a foreign insurer may set up a licensed branch (Section 8). At least 75% of voting shares must be held by Thai nationals and at least three-quarters of directors must be Thai (Section 10), subject to the Commission's permission for non-Thai holdings of up to 49% and the Minister's power to relax the requirement, so 49% is not an absolute cap; foreign-insurer branches are exempt (Section 13). The Act also covers security deposits, reserves and capital funds, policy-form approval, the ban on unjustified delay in paying policy money, licensing of life agents and brokers, the Life Insurance Fund, and penalties. It is supervised through the Commission and Registrar of the Office of Insurance Commission (OIC). Non-life business is governed by a separate Act, and a life insurer may not carry it on (Section 33(1)). The Government Savings Bank's life insurance business is outside the Act (Section 4).
The summary above is a plain-English educational paraphrase of Section 27 of the Life Insurance Act. It is not an authoritative translation. For the binding Thai text, consult the Royal Gazette or the Office of the Council of State. Educational use only — not a substitute for advice from a Thai-qualified lawyer.
Professional Legal Assistance
When a matter involves investigation, arrest, detention, litigation, or regulatory action, professional legal representation becomes essential.
Anglo Siam Legal provides experienced legal services across Thailand for both Thai nationals and foreigners.
feedback.wasThisHelpful