BANGKOK — Thailand’s insurance regulator has ordered insurance companies to compensate the owner of a PTT petrol station damaged in a recent Cambodian rocket attack, rejecting insurers’ attempts to classify the incident as an act of war.
The Office of Insurance Commission (OIC) announced Monday that insurers must pay compensation to Kamolrat Phonsrettalerd, whose petrol station in Sisaket province was severely damaged in the cross-border attack that killed eight people.
Kamolrat had sought government intervention after insurance companies initially denied her claim, arguing their policies didn’t cover war or invasion-related incidents. The attack caused over 21 million baht ($646,750) in damage to her station and adjacent grocery shop, forcing both businesses to close for more than three months.
“This incident is not considered a war risk, but an armed clash between armed forces,” explained Kananusorn Thiangtrakul, OIC’s Deputy Secretary General for Consumer Protection. “Such clashes in border provinces are localized and of short duration, therefore not classified as war or invasion.”
Government Coordination Ensures Swift Action
The Energy Ministry coordinated with OIC and PTT Oil and Retail Business executives to resolve the issue quickly. Col Fueangvitch Aniruthdeva, assistant to Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga, said the ministry played a key coordinating role despite not being directly responsible.
Investigation revealed the petrol station was covered under two policies, including an Industrial All Risk (IAR) policy that covers all buildings on the site. The OIC has expedited the normally 45-day claims process, beginning immediately after the August 2 incident.
Broader Victim Compensation Efforts
The OIC is also coordinating compensation for other victims, including those with private insurance policies. For victims without coverage, the agency has asked insurance companies to consider voluntary compensation. One child victim was found to have accident insurance through their school.
“The OIC has negotiated with executives of the two insurance companies involved,” Kananusorn said. “They acknowledge this was a skirmish, not war, and all policy terms require compensation.”
The station owner noted that the property remains under a bank loan repayment plan, making the insurance compensation crucial for rebuilding efforts.
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