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Non-Life Insurance Act Section 79 — Non-Life Insurance Fund
Non-Life Insurance Act (พระราชบัญญัติประกันวินาศภัย) — Section 79.
Plain-English Summary
Establishes the Non-Life Insurance Fund (กองทุนประกันวินาศภัย) as a juristic person, to protect creditors under insurance contracts when an insurer's licence is revoked and to develop the non-life insurance business to be stable and secure. Insurers remit to it at a rate the Commission announces with the Minister's consent, not above 0.5% of premiums received in the preceding six months (Section 80/3). The Fund pays each creditor in place of the revoked insurer, and the amount, together with anything received from the liquidator, may not exceed THB 1,000,000, each creditor being assessed mainly by the number of persons covered under the insurance contract (Section 80/5). The Commission with the Minister's consent may announce a higher figure, generally or for a type of contract (Section 80/6).
Official Text
Official Thai text at the Royal Gazette / Office of the Council of State. Translation summary only.
Consult official sourceParent Statute
Non-Life Insurance Act
พระราชบัญญัติประกันวินาศภัย · B.E. 2535 (1992)
The Non-Life Insurance Act B.E. 2535 (1992) governs non-life insurers in Thailand and repeals the Non-Life Insurance Act B.E. 2510 (1967) (Section 3). Non-life loss (วินาศภัย) means any damage that can be estimated in money, including loss of rights, benefits or income (Section 4). Non-life insurance may be carried on only by a public limited company holding a licence from the Minister with Cabinet approval (Section 6). At least 75% of voting shares must be held by Thai nationals and at least three-quarters of directors must be Thai (Section 9), 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. The Act also covers security deposits by class of insurance, reserves, capital funds, policy-form approval, retention limits, licensed loss assessors, fire-insurance control, the ban on unjustified delay in paying claims, licensing of agents and brokers, the Non-Life Insurance Fund, and penalties. It is supervised through the Commission and Registrar of the Office of Insurance Commission (OIC). Life business is governed by a separate Act, and a non-life insurer may not carry it on (Section 31(1)). Compulsory motor-accident cover is not in this Act; it is under a separate Act on the protection of motor-accident victims.
The summary above is a plain-English educational paraphrase of Section 79 of the Non-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.
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