SCB first to introduce comprehensive natural disaster insurance service

Siam Commercial Bank has teamed up with Deves Insurance PLC to introduce “Baan Pitakpai” (Safe House) insurance service providing home loan clients with extensive basic coverage from fire to natural calamities, such as flooding, tsunami, underwater wave, windstorm, storm surge, earthquake, hailstones, and volcano eruption.

          It is the first-ever comprehensive natural disaster insurance product offered to clients featuring high protection coverage and in all risk-prone areas in Thailand following the devastating flood crisis in the country last year. The service is now available to boost confidence and give clients alternative choices.

       SCB Executive Vice President, Wealth Division, Smith Banomyong said the flood crisis ravaging the country late last year compelled many insurance companies to halt offering insurance coverage against flooding.

   Currently, for new clients seeking housing loans from the Bank, a minimum coverage (sub-limit) for loss from flooding and natural disasters of 10% of the insured damage to a maximum of 50 million baht is applicable. The premium is set at around 6-9% of the amount of property coverage. Existing home loan clients can buy additional insurance against flooding as well.

    Deves Insurance President Chatchai Chinvetkitvanit said many foreign reinsurance companies are reluctant to include insurance coverage against four main natural calamities – flooding, earthquake, windstorm, and hailstones – in the reinsurance agreement made with local insurance firms this year in the wake of the recent devastating flooding.

   Chatchai noted that to enhance insurance capability, accommodate risk diversification, and ease the burdens of the insured in case their assets are ravaged by natural disasters, Deves Insurance is among the first group of local insurance companies to have persuaded major foreign reinsurance firms into taking such risks. Consequently, the company is ready to cooperate with SCB in providing such insurance coverage service under the “Baan Pitakpai” (Safe House) insurance policy.

   “We believe the proposed coverage pattern and conditions of the scheme will help enhance our clients' confidence that their assets will be protected appropriately and end their worries about possible damage in the future” said Mr. Chatchai.

        Clients wishing to buy additional insurance against natural calamities or obtain further information can contact the SCB Call Center at 02-777-7777 or Deves Insurance Call Center at 02-670-4444 (extend 2).