Thai Supreme Court orders insurers to cover Red Shirts riot damage claims

Thai Supreme Court orders insurers to cover Red Shirts riot damage claims | Insurance Business

Thai Supreme Court orders insurers to cover Red Shirts riot damage claims

Thailand’s Supreme Court has ordered six insurers to pay around THB100 million (US$3.15 million) in property damage claims due to anti-government protests that led to rioting in 2010.

The decision compels New Hampshire Insurance, Dhipaya Insurance, Fall Call Insurance, Bangkok Insurance, Deves Insurance, and Muang Thai Insurance to compensate the claimants by overturning the verdicts of two lower courts, the Bangkok Post reported.

The claimants – Stock Exchange of Thailand (SET), Thailand Securities Depository, and Family Knowhow Company – took out property insurance worth THB3.4 billion (US$107 million) for the SET building, valid from January 31, 2010 to January 31, 2011.

On May 19, 2010, several rioters involved with the Red Shirts movement broke into the building, destroying and setting fire to valuables, with damage estimated at THB108 million. The six insurers refused to pay the claims, saying that the rioters had committed an act of terrorism, and was not covered by the insurance.

While two lower courts initially sided with the insurers, the Supreme Court ruled that the damage was not an act of terrorism, and was caused by individuals with malicious intent. Therefore, the incident was covered by insurance.

The insurers were ordered to pay THB89 million to SET, THB57,500 to the Thailand Securities Depository, and THB9 million to the Family Knowhow Company.