Authorities are stepping up efforts to regulate jet ski operators following alleged scams involving extortion of foreigners over damage to jet skis on Phuket and other incidents.
Phuket officials, jet ski operators and representatives of insurance companies yesterday met to discuss measures to promote tourism in the resort island and to bring jet ski operations into the insurance system to prevent possible extortion of foreigners.
The move came after the recent distribution of video recordings featuring foreign tourists allegedly being ripped off over damage to jet skis on Phuket and other incidents.
Phuket deputy governor Samith Palwatwichai said a committee will be set up to look at the possibility of having all jet skis in the province insured.
Mr Samith said local authorities, insurers and jet ski operators will meet again on Wednesday to thrash out the details of insurance premiums for jet skis.
A total of 219 jet skis are available for rent on Surin, Bangtao, Kamala, Patong and Kata-Karon beaches.
Mr Samith said the provincial marine office had been asked to survey and register jet ski operators in the province.
The deputy governor said operators will be asked to stop overcharging and extorting tourists or demanding exorbitant compensation for minor damage to jet skis.
Suvimol sae Lim, director of the Phuket insurance commission office, said Phuket should serve as a trail-blazer in jet ski insurance as so far no insurers had ever provided coverage for jet ski operators in the country.
She said if jet ski insurance was introduced in the province, this would help sort out problems involving the extortion of foreigners over damage.
Tourists who rented jet skis would feel confident they would not be taken advantage of, Ms Suvimol said.
"If Phuket is successful, it will serve as an example for other provinces which has jet ski operators," she said.
Ms Suvimol said initially proposed insurance packages would cover damage to jet skis, insure against loss of income due to the damage to jet skis and provide coverage to tourists renting them.
So far only the Bangkok Insurance company has offered to provide cover for jet skis in Phuket, Ms Suvimol said.
Anusorn Sa-re, head of the Phuket association of jet ski operators, said he agreed with the proposal and said the insurance premium must be acceptable to operators. He said operators can only earn income between December and May. They could not make money during the remainder of the year as it is the monsoon season.
Recently, video clips have been distributed showing a female British tourist being arrested for marijuana possession at a full moon party on Koh Phangan and a British marine and a US marine being threatened to pay exorbitant compensation for damage to rented jet skis on Phuket in separate incidents.
Sunday, September 20, 2009
Friday, September 18, 2009
Former execs of Thanasin Insurance face fraud charges
The Department of Special Investigation has resolved that former executives of Thanasin Insurance should face charges for doctoring financial statements and using false documents.
DSI spokesman Pol Colonel Narat Sawettanant said yesterday that the seven former executives had violated the Public Companies Act, the Insurance Act and the Criminal Code. They also caused damages worth Bt300 million.
The case has been forwarded to state prosecutors.
The insurance company was stopped from doing business in early 2007 and the Office of Insurance Commission and DSI later launched a joint investigation into its transactions.
Narat said the probe found that the executives had concealed facts about the firm's true financial situation. The investigation also secured evidence showing that they had doctored the firm's accounts to convince others that its capital met legal requirements.
In February this year, Supachai Srisupaaksorn, president of Klongchan Credit Union Cooperative, joined up with friends and cooperatives to buy an 80 per cent stake in Thanasin for Bt324 million. Thanasin was subsequently renamed Union Inter Insurance, even though about 20 per cent of the stake is still held by some 30 original shareholders. The firm was recently allowed to resume business.
DSI spokesman Pol Colonel Narat Sawettanant said yesterday that the seven former executives had violated the Public Companies Act, the Insurance Act and the Criminal Code. They also caused damages worth Bt300 million.
The case has been forwarded to state prosecutors.
The insurance company was stopped from doing business in early 2007 and the Office of Insurance Commission and DSI later launched a joint investigation into its transactions.
Narat said the probe found that the executives had concealed facts about the firm's true financial situation. The investigation also secured evidence showing that they had doctored the firm's accounts to convince others that its capital met legal requirements.
In February this year, Supachai Srisupaaksorn, president of Klongchan Credit Union Cooperative, joined up with friends and cooperatives to buy an 80 per cent stake in Thanasin for Bt324 million. Thanasin was subsequently renamed Union Inter Insurance, even though about 20 per cent of the stake is still held by some 30 original shareholders. The firm was recently allowed to resume business.
Friday, September 11, 2009
Southeast in rebranding drive
The Southeast business group, owned by liquor billionaire Charoen Sirivadhanabhakdi, is preparing to invest about 400 million baht over the next four years in rebranding, information technology infrastructure and product and distribution expansion.
"Rebranding including new TV commercials, public relations and product and service development is expected to cost the group about 100 million baht in the first phase, which lasts about 12 months," said Chotiphat Bijananda, Mr Charoen's son-in-law and the chairman of the executive board of the Southeast Group.
"We are ready to invest a similar amount in phases over the next three years after that if the first phase proves successful."
The group includes Southeast Life Insurance, Southeast Insurance (2000)Co Ltd, and Southeast Capital Ltd.
The Southeast Group yesterday introduced its new corporate identity and TV commercials, its first brand investment in the last 13 years, as it aims to position itself as the country's leading insurance and financial service provider as it prepares for the economic recovery.The TV commercials start airing today.
The company also partnered with IBM Thailand to transform its IT systems to create a more dynamic infrastructure for better risk management and customer service enhancement. AIS also helped to develop new products and services,although details have not yet been disclosed.
According to Mr Chotiphat, the group's rebranding and organisational restructuring should enable its two insurance firms to rank in the top nine by 2013.
Southeast Life Insurance by 2013 is projected to see its written premiums for new business rise by 500%, with direct premiums of Southeast Insurance to increase by 140%.
Southeast Capital, which deals mainly with leasing, hire-purchase and operating leases, expects to see its car leases rise by 280%.
In 2008, according to the Office of the Insurance Commission, Southeast Life reported total premiums worth 1.72 billion baht, up 10% from a year earlier,but it registered first-year premiums worth 198 million baht, a rise of 49%from a year before.
The group's general insurance firm produced 1.82 billion baht, up 11.32%from a year earlier.
According to Mr Chotiphat, the life insurance business expects new premiums to grow 56.9% by the end of this year, with insurance firm production to grow by 11.51%.
The number of car leases by Southeast Capital is projected to rise by 15.67% to 1,970 units.
"Rebranding including new TV commercials, public relations and product and service development is expected to cost the group about 100 million baht in the first phase, which lasts about 12 months," said Chotiphat Bijananda, Mr Charoen's son-in-law and the chairman of the executive board of the Southeast Group.
"We are ready to invest a similar amount in phases over the next three years after that if the first phase proves successful."
The group includes Southeast Life Insurance, Southeast Insurance (2000)Co Ltd, and Southeast Capital Ltd.
The Southeast Group yesterday introduced its new corporate identity and TV commercials, its first brand investment in the last 13 years, as it aims to position itself as the country's leading insurance and financial service provider as it prepares for the economic recovery.The TV commercials start airing today.
The company also partnered with IBM Thailand to transform its IT systems to create a more dynamic infrastructure for better risk management and customer service enhancement. AIS also helped to develop new products and services,although details have not yet been disclosed.
According to Mr Chotiphat, the group's rebranding and organisational restructuring should enable its two insurance firms to rank in the top nine by 2013.
Southeast Life Insurance by 2013 is projected to see its written premiums for new business rise by 500%, with direct premiums of Southeast Insurance to increase by 140%.
Southeast Capital, which deals mainly with leasing, hire-purchase and operating leases, expects to see its car leases rise by 280%.
In 2008, according to the Office of the Insurance Commission, Southeast Life reported total premiums worth 1.72 billion baht, up 10% from a year earlier,but it registered first-year premiums worth 198 million baht, a rise of 49%from a year before.
The group's general insurance firm produced 1.82 billion baht, up 11.32%from a year earlier.
According to Mr Chotiphat, the life insurance business expects new premiums to grow 56.9% by the end of this year, with insurance firm production to grow by 11.51%.
The number of car leases by Southeast Capital is projected to rise by 15.67% to 1,970 units.
Sunday, September 6, 2009
AIG selling asset-management unit to Hong Kong firm
American International Group Inc says on Saturday it has reached a deal to sell a portion of its asset management business to a Hong Kong-based investment firm for $500 million.
The sale to Bridge Partners LP, which is owned by Pacific Century Group, includes about $300 million in cash at closing, additional future consideration that includes a performance note and a continuing share of carried interest.
The sale is just the latest for the troubled insurance giant.
AIG is trying to sell assets to repay billions of dollars in federal loans. The package, which helped it avoid failing,was worth up to $182.5 billion.
The latest units being sold operate in 32 countries and manage about $88.7 billion of investments by institutional and retail clients, AIG said in a release.
AIG will retain its in-house investment arm that oversees about $480 billion of assets under management.
Win J. Neuger will continue as CEO of the units being sold and the existing management team will remain in place,the company said. The transaction is subject to receipt of regulatory approvals.
AIG shares fell $1.70, or 4%, to $40.05 on Friday, then fell another 32 cents to $39.73 in after-hours trading.
The sale to Bridge Partners LP, which is owned by Pacific Century Group, includes about $300 million in cash at closing, additional future consideration that includes a performance note and a continuing share of carried interest.
The sale is just the latest for the troubled insurance giant.
AIG is trying to sell assets to repay billions of dollars in federal loans. The package, which helped it avoid failing,was worth up to $182.5 billion.
The latest units being sold operate in 32 countries and manage about $88.7 billion of investments by institutional and retail clients, AIG said in a release.
AIG will retain its in-house investment arm that oversees about $480 billion of assets under management.
Win J. Neuger will continue as CEO of the units being sold and the existing management team will remain in place,the company said. The transaction is subject to receipt of regulatory approvals.
AIG shares fell $1.70, or 4%, to $40.05 on Friday, then fell another 32 cents to $39.73 in after-hours trading.
Friday, September 4, 2009
OIC seeks new tax breaks
The Insurance Commission has asked the Finance Ministry to increase tax deductions for three insurance categories to boost the industry's growth.
Regulators recently completed a review of tax incentives offered against premium payments for different types of insurance, said Chantra Purnariksha,the secretary-general of the Office of the Insurance Commission (OIC).
The commission will propose that individual tax deductions for life insurance premiums be doubled to up to 200,000 baht per year to encourage longterm saving, she said.
Regulators will also propose that tax deductions for premium payments to investment-linked life insurance policies be doubled to up to 200,000 baht for the first year. From the third year of coverage,deductions should be made similar to tax incentives offered for contributions to long-term equity and retirement mutual funds, now set at up to 500,000 baht per year or 15% of income, whichever is lower.
The Insurance Commission also proposes that premium payments for health insurance riders to life insurance policies also be made deductable.
The Revenue Department currently disallows tax deductions for premiums paid to health insurance riders. Insurance regulators propose that premium payments of up to 50,000 baht per year for health coverage be made deductable from personal income tax.
In any case, tax deductions should be permitted only for life insurance policies with terms of at least 10 years.
Mrs Chantra said premium payments for life insurance currently amount to 300 billion baht per year, with another 100 billion paid for general insurance policies.
The commission projects premium payments at 5% of GDP within two years,up from 3.9% this year.
Regulators recently completed a review of tax incentives offered against premium payments for different types of insurance, said Chantra Purnariksha,the secretary-general of the Office of the Insurance Commission (OIC).
The commission will propose that individual tax deductions for life insurance premiums be doubled to up to 200,000 baht per year to encourage longterm saving, she said.
Regulators will also propose that tax deductions for premium payments to investment-linked life insurance policies be doubled to up to 200,000 baht for the first year. From the third year of coverage,deductions should be made similar to tax incentives offered for contributions to long-term equity and retirement mutual funds, now set at up to 500,000 baht per year or 15% of income, whichever is lower.
The Insurance Commission also proposes that premium payments for health insurance riders to life insurance policies also be made deductable.
The Revenue Department currently disallows tax deductions for premiums paid to health insurance riders. Insurance regulators propose that premium payments of up to 50,000 baht per year for health coverage be made deductable from personal income tax.
In any case, tax deductions should be permitted only for life insurance policies with terms of at least 10 years.
Mrs Chantra said premium payments for life insurance currently amount to 300 billion baht per year, with another 100 billion paid for general insurance policies.
The commission projects premium payments at 5% of GDP within two years,up from 3.9% this year.
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