UPDATE: Thailand approves nationwide disaster insurance scheme covering Phuket households

Thailand has approved a nationwide disaster insurance scheme expected to launch in October and cover about 30 million households, including homes in Phuket. The Thaiger reported the approval, while Chiang Rai Times reported the planned October launch.

The government plans to allocate about B15.5 billion a year to pay insurance premiums for coverage against floods, windstorms and earthquakes. The scheme is intended to provide faster financial support after major disasters and shift higher risks to private insurers.

Under the reported terms, households facing severe flood damage would receive an initial payment of B10,000. Initial payments for destructive windstorms or severe earthquakes would be B5,000. The first payments are expected to reach affected families within 15 days of a disaster.

Residential property compensation could reach B100,000 per household for each event. Families affected by a disaster-related death would receive B2 million, the report said.

The programme follows severe monsoon flooding in Chiang Rai and Nan province, where thousands of residents were reportedly forced to leave their homes. The government currently spends at least B30 billion a year on disaster compensation, but such payments can be slow and may not cover the full extent of losses.

The scheme was developed with the Thai General Insurance Association and government agencies. The state would fund the basic coverage, while private insurers would handle costs above the basic limits.

Officials are reviewing existing regulations to prevent overlaps with other relief programmes before the planned October launch.