The Office of Insurance Commission (OIC) is expediting the establishment of central standards for insurance claim payouts to citizens and businesses damaged by flooding in the southern region, especially regarding electric vehicles.
Mr. Arpakorn Panlert, Deputy Secretary-General for Insurance Business Supervision at the Office of Insurance Commission (OIC). He stated that the recent flooding across several southern provinces has caused massive damage to both the public and business sectors. Currently, the OIC has complete data on insurance policies and non-life insurance covering flood events held by citizens, allowing claims to be processed and payouts made immediately after water levels recede and damage surveys are completed. Today, the OIC convened all related private sector insurance entities—including insurance associations and non-life insurance companies—for discussions to clarify and establish central criteria for claims processing to ensure accuracy and speed for claimants.
The flood insurance claim payouts will be categorized into several parts.
First,are residential homes insured under non-life policies that cover flood damage. Claims can be paid immediately after damage assessments are completed, as existing criteria are already in place.
Second,are private sector businesses that had to suspend operations due to flooding. Claims can be paid promptly based on actual damages incurred, according to the terms of their insurance policies.
Third,are conventional internal combustion engine vehicles damaged by floodwaters. Claims are divided into five levels depending on the extent of damage, from flooding at the vehicle’s floor level to full submersion. This category can also be paid immediately since established criteria already exist.
Andfourth,are electric vehicles (EVs), a new category without existing central standards. Previously, EV insurance primarily covered battery damage, as the battery is the most critical and costly component. However, this flood event has caused extensive damage to EVs, necessitating the creation of central standards for insurance companies to use in compensating EV policyholders properly. This includes cases where vehicles were driven into floodwaters and damaged, or parked and fully submerged. The standards will clarify how long a vehicle and battery must be submerged to be considered a total loss requiring battery replacement, or when the existing battery can be inspected and repaired under insurance claims. The criteria will also specify whether compensation covers only the battery or includes damage to the vehicle body as well.
These central standards are expected to be finalized within 1-2 days to inform affected citizens. This will enable them to prepare documentation and evidence of vehicle damage to submit timely and accurate insurance claims once the flood situation subsides.