Lawmaker Questions 40 Billion Baht Disaster Insurance Cost
A Thai Loyalty Party MP questioned why the government's disaster insurance scheme costs 40 billion baht annually when historical data shows average disaster expenses at just 5.3 billion baht per year, proposing a state-run relief fund inste
Dr. Voralong Dechkijwikrom, a Thai Loyalty Party MP, challenged the government's national disaster insurance scheme during a parliamentary statement on September 3. The Cabinet approved the programme to insure 30,000 households against floods, storms, and earthquakes. Flood victims receive an initial 10,000 baht payout, then up to 100,000 baht annually upon damage assessment. Storm and earthquake victims get 5,000 baht initially, also capped at 100,000 baht annually.
Dr. Voralong questioned the government's claim that annual costs will reach 40 billion baht, when Cabinet data from April 21 shows average disaster expenses from 2003–2026 are only 5.3 billion baht annually. He argued that privatizing disaster relief through insurance companies with commission incentives shifts government responsibility to private insurers. He stressed that if damages exceed insurance limits, the government cannot dodge accountability anyway.
The MP proposed establishing a government-run disaster relief fund instead, depositing 1.55 billion baht annually to accumulate reserves over time. He argued this approach avoids commission costs paid to private insurers and ensures the state maintains responsibility for citizen welfare regardless of disaster severity. He challenged the government to reform laws and procedures to speed up relief distribution rather than outsourcing to private companies.
