Legal Measures In Respect Of Supervision And Inspection Of Loss Insurance Company: Analysis Of Draft Of The Loss Insurance ACT B.E. ......

Abstract

           The objectives of this thesis are to study and analyze the Draft of The LOSS Insurance Act B.E. .... in respect of the supervision and controls of insurance company. Since the draft law is in the process of being presented to the Cabinet with some legislative provisions that require analytical results for further amendment at the legislative level. As for the relevant insurance law and company inspection according to the draft The LOSS Insurance Act BE ...., Some defective provisions in respect of company supervision and inspection of companies in Thailand are found and not suitable and not in line with current situation and international principles. Therefore, it is necessary to conduct a comparative study and analysis on the criteria to provide guidance on the amendment of The LOSS Insurance Act B.E. .... to the part of the company supervision and inspection.
           From the study, it was found that the Draft The LOSS Insurance Act B.E..... and related laws in the area of company supervision and inspection in some cases are regarded as a good principle that can effectively be implemented but there are still some cases that are inconsistent with current situation and international principles.
           The provisions of the Draft of The LOSS Insurance Act B.E..... should therefore be improved and amended to be a laws eficiently enforceable in the future as follows:
           1. The guidelines that require regulatory agencies to have the authority to establish additional commission in accordance with Sections 89 and 90 of the Insurance Act. B.E ...… is redundant with Section 38 (17) in the same Act. 
           Sections 89 and 90 should be revoked so Section 38 (17) would not be overlapped. Section 38 (17) provides plenty authority to establish the audit committee, corporate governance committee, and any other committee or announcement. If there is a need to emphasize required by insurance companies, it can be done by issuing board regulations.
           2. Rules concerning restrictions on the monitoring operations, registrar, and staffs under Section 91 of the Insurance Act B.E...... Restricting the audit can only be done from dawn to dusk.
          Facilitations should be provided to the registrar and the oficer with the authority to inspect the business and inancial position of the business when the inspection has been started but is not inished, it will be done at night or outside the business hours of that facility only after having obtained permission from the Ofice of Insurance Commission according to the Financial Institutions Act, Section 85 and Section 264 of the Securities Exchange Act.
            3. The Regulations relating to the audit authority under Section 91 of the Insurance Act B.E.…. providing the audit authority only to the registrar and the authorized oficer. However, under Section 82, the audit may be participated by an auditor, an actuary, or a specialist appointed by the registrar.
          Individuals appointed by the registrar should be empowered to perform the audit equivalent to the oficer in the audit to facilitate the auditor and be consistent with the law by using the same guideline as the Financial Institutions Act, Section 85 the empowers outsiders to perform the audit equivalent to the appointed oficer.