The Thailand Office of Insurance Commission (OIC) published a legal clarification on how “war” and related exclusions should be interpreted in insurance policies in the context of the Thailand–Cambodia border clashes, concluding that the current situation has not been assessed as “war” for the purpose of applying standard war exclusions. The OIC also addressed insurers’ questions on whether making ex gratia or humanitarian payments is permissible, indicating such payments can be made in good-faith underwriting discretion without breaching statutory prohibitions on providing benefits beyond the policy. The OIC noted that war-risk exclusions in many policies group multiple perils together (for example war, hostile acts, invasion, rebellion, riot, terrorism, and civil war), but an insurer relying on the exclusion to deny coverage should identify the specific excluded peril that applies rather than citing the entire clause generically. Its view that the current clashes are not “war” was linked to the absence of clear international recognition of the situation as war, with the United Nations referring to “intensifying border clashes” and academic debate focusing on duration and intensity thresholds. The OIC did not opine on whether the events may fall within other exclusions, citing variation in policy wording across products and insurers and the need for case-by-case assessment based on wording and facts, with disputes typically resolved through negotiation/mediation or court proceedings. On ex gratia payments, the OIC addressed concerns about the “special benefits” prohibitions under Section 33(10) of the Life Insurance Act B.E. 2535 and Section 31(11) of the Non-life Insurance Act B.E. 2535, and referenced foreign case law to support the view that discretionary claims payments do not necessarily constitute prohibited extra benefits. The OIC indicated it is prepared to act as an intermediary in discussions between insurers and policyholders to facilitate appropriate assistance where coverage interpretation remains uncertain.
Thailand Office of Insurance Commission 2025-08-09
Thailand Office of Insurance Commission says Thailand–Cambodia border clashes do not yet trigger war exclusions and supports ex gratia insurance payments
The Thailand Office of Insurance Commission (OIC) clarified that the Thailand–Cambodia border clashes do not constitute "war" for insurance policy exclusions, advising insurers to specify applicable perils when denying coverage. The OIC confirmed that ex gratia payments are permissible under good-faith underwriting discretion without breaching statutory prohibitions. It offered to mediate between insurers and policyholders where coverage interpretation is uncertain.