BHUMIBOL ADULYADEJ, REX.
    Given on the 28th Day of August B.E. 2550;
    Being the 62nd Year of the Present Reign.
    His Majesty King Bhumibol Adulyadej is graciously pleased to
proclaim that:
    Whereas it is expedient to have a law on insurance business regulation
and promotion committee;
    Be it, therefore, enacted by the King, by and with the advice and
consent of the National Legislative Assembly, as follows:
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    Section 1. This Act is called the “Insurance Business Regulation and
Promotion Committee Act, B.E. 2550”.
    Section 2. This Act shall come into force as from the day following
the date of its publication in the Government Gazette.
    Section 3. The Insurance Act, B.E. 2535, the Life Insurance Act,
B.E. 2535 and the Protection of Car Accident Victim Act, B.E. 2535 as amended by
the Protection of Car Accident Victim Act (No. 2), B.E. 2535, the Protection of Car
Accident Victim Act (No. 3), B.E. 2540 and the Protection of Car Accident Victim
Act (No. 4), B.E. 2550 and all Ministerial Regulations, Notifications, Rules,
Regulations and Orders issued by virtue of those Acts shall be in force in so far as
they are not contrary to or inconsistent with the provisions of this Act.
    For the purpose of the enforcement of all Acts, Ministerial
    Regulations, Notifications, Rules, Regulations and Orders under paragraph one, some
terms as prescribed in those Acts, Ministerial Regulations, Notifications, Rules,
Regulations and Orders shall be read as follows:
    (1) In the Insurance Act, B.E. 2535;
    The term “Minister of Commerce” in section 5 shall be read as
“Minister of Finance”;
    The term “Minister” in section 7 paragraph three, section 13, section
16, section 19, section 23, section 24, section 28, section 31, section 32, section 34,
section 36, section 52, section 53, section 60, section 62, section 77 and section 88
shall be read as “Insurance Business Regulation and Promotion Committee”;
    The term “Director of the Insurance Department” in section 4 and
section 110 paragraph four shall be read as “Secretary-General of the Insurance
Business Regulation and Promotion Committee”;
    The term “registrar” in section 20, section 21, section 22, section 37,
section 38, section 39, section 44, section 46, section 47, section 48, section 49,
section 50, section 57, section 63, section 64, section 66, section 68 paragraph two
and section 70 shall be read as “Insurance Business Regulation and Promotion
Committee”;
    The term “Insurance Department” in section 61, section 82, section
109 and section 110 shall be read as “Office of the Insurance Business Regulation and
Promotion Committee”;
    The term “Board” in section 31 (17) shall be read as “Board of
Directors of the Company”;
    The term “Committee” in section 111 shall be read as “Settlement
Committee”;
    (2) In the Life Insurance Act, B.E. 2535;
    The term “Minister of Commerce” in section 6 shall be read as
“Minister of Finance”;
    The term “Minister” in section 8 paragraph three, section 14, section
17, section 20, section 23, section 24, section 28, section 33, section 35, section 37,
section 47, section 53, section 54, section 63, section 65, section 67, section 82 and
section 93 shall be read as “Insurance Business Regulation and Promotion
Committee”;
    The term “Director of the Insurance Department” in section 5 and
section 116 shall be read as “Secretary-General of the Insurance Business Regulation
and Promotion Committee”;
    The term “registrar” in section 21, section 22, section 38, section 39,
section 40, section 42, section 43, section 44, section 45, section 46, section 47,
section 51, section 68, section 69, section 73 paragraph two, section 75 and section 77
shall be read as “Insurance Business Regulation and Promotion Committee”;
    The term “Insurance Department” in section 66, section 87, section
115 and section 116 shall be read as “Office of the Insurance Business Regulation and
Promotion Committee”;
    The term “Board” in section 33 (16) shall be read as “Board of
Directors of the Company”;
    The term “Committee” in section 57 shall be read as “Company
Control Committee”;
    The term “Committee” in section 117 shall be read as “Settlement
Committee”;
    (3) In the Protection of Car Accident Victim Act, B.E. 2535 as
amended by the Protection of Car Accident Victim Act (No. 2), B.E. 2535, the
Protection of Car Accident Victim Act (No. 3), B.E. 2540 and the Protection of Car
Accident Victim Act (No. 4), B.E. 2550;
    The term “Minister of Commerce” in section 5 shall be read as
“Minister of Finance”;
    The term “Minister” in section 14, section 19, section 26, section 30
and section 34 shall be read as “Insurance Business Regulation and Promotion
Committee”;
    The term “Permanent Secretary of the Ministry of Commerce” in
section 6 shall be read as “Permanent Secretary of the Ministry of Finance”;
    The term “Director of the Insurance Department” in section 10 bis
paragraph six shall be read as “Insurance Business Regulation and Promotion
Committee”;
    The term “Director of the Insurance Department” in section 4, section
6 and section 10 bis paragraph three shall be read as “Secretary-General of the
Insurance Business Regulation and Promotion Committee”;
    The term “Insurance Department” in section 28, section 30, section 33
and section 34 shall be read as “Office of the Insurance Business Regulation and
Promotion Committee”;
    The term “a representative of the Ministry of Finance” in section 6
shall be read as “a representative of the Ministry of Commerce”.
    Section 4. In this Act:
    “Committee” means the Insurance Business Regulation and Promotion
Committee;
    “Member” means a member of the Insurance Business Regulation and
Promotion Committee;
    “Office” means the Office of the Insurance Business Regulation and
Promotion Committee;
    “Secretary-General” means the Secretary-General of the Insurance
Business Regulation and Promotion Committee;
    “Insurance company” means a company under the law on insurance
and the law on life insurance;
    “Insurance business” means the carrying out of insurance business
under the law on insurance, the carrying out of life insurance business under the law
on life insurance and the protection of car accident victim under the law on protection
of car accident victim;
    “Minister” means the Minister having charge and control of the
execution of this Act.
    Section 5. The Minister of Finance shall have charge and control
of the execution of this Act.
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    Chapter 1
    Insurance Business Regulation and
    Promotion Committee
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    Section 6. There shall be the Insurance Business Regulation and
Promotion Committee consisting of the Permanent Secretary of the Ministry of
Finance as Chairperson, the Permanent Secretary of the Ministry of Commerce, the
Secretary-General of the Consumer Protection Commission, the Governor of the Bank
of Thailand, the Secretary-General of the Securities and Exchange Commission and
not less than six but not more than eight qualified persons as appointed by the
Minister, with approval of the Council of Ministers, from the specialists in law,
accounting, business administration, finance, economics or insurance; not more than
two from each field, as members.
    The Secretary-General shall be member and secretary.
The selection of the qualified persons to be appointed as the qualified
members under paragraph one shall be in accordance with the rules and procedure as
specified by the Council of Ministers and published in the Government Gazette.
    Section 7. A qualified member shall be of Thai nationality and
shall not have any of the prohibitions as follows:
    (1) being bankrupt or having been dishonest bankrupt;
    (2) being an incompetent or quasi incompetent;
    (3) having been sentenced by a final judgment to imprisonment
notwithstanding the suspension of the sentence, except for an offence committed
through negligence or a petty offence or where the punishment has undergone or the
period for determination or execution of punishment has expired;
    (4) being a director, manager or a person in charge of the
administration or management of insurance company;
    (5) being an official, officer or employee of a government agency or
State enterprise or other State agencies or local administration;
    (6) being or having been a political official, a person holding political
position, member of local assembly or local administrator, except where such person
vacates office for not less than one year;
    (7) being or having been a director or a person holding any position in
a political party or an officer of a political party, except where such person vacates
office for not less than one year;
    (8) having been expelled, dismissed or removed from the official
service, a State agency or a State enterprise on the grounds of dishonest performance
of duties or gross misbehaviour.
    Section 8. A qualified member shall hold office for a term of three
years and may be reappointed, but not more than two consecutive terms.
    Section 9. In the case where the qualified members vacate office at
the end of the term, the new qualified members shall be appointed within sixty days.
    If the new qualified members have not been appointed, the qualified members who
vacate office shall remain in office to continue their duties until the newly qualified
members have been appointed.
    Section 10. In addition to vacating office at the end of the term, a
qualified member vacates office upon:
    (1) death;
    (2) resignation;
    (3) being disqualified or being under any of the prohibitions under
section 7;
    (4) being dismissed by the Council of Ministers due to negligent or
dishonest in the discharge of duty, disgrace behaviour or incapability.
    Section 11. In the case where a qualified member vacates office
before term or where there is an appointment of additional qualified member while
the appointed qualified members still in office, the appointee shall be in office for the
unexpired term of office of the appointed qualified members.
    Section 12. The Committee shall have the powers and duties to lay
down policy, regulate, promote and develop insurance business, including the powers
and duties as follows:
    (1) to lay down rules, procedure, conditions and best practices for the
carrying out of insurance business for the compliance with international standard;
    (2) to determine rules, procedure, conditions and guidelines for the
regulation, promotion and development of insurance business;
    (3) to give recommendation to the Minister or the Council of Ministers
in relation to the issuance and revocation of license and the issuance of Ministerial
Regulations and Notifications under the law on insurance, the law on life insurance
and the law on protection of car accident victim and other matters as entrusted by the
Minister;
    (4) to notify, upon the approval of the Minister under section 43, the
rate of the counterpart fund to be remitted;
    (5) to lay down rules and procedure for the giving of approval to the
determination of insurance premium;
    (6) to consider appeal on administrative order made by the Secretary-
General;
    (7) to prepare work plan, strategy and directives for the administration
of the affaires of the Office;
    (8) to determine rules on the organisation, finance, personnel
administration, general administration, procurement, internal audit including aids and
welfares of the Office;
    (9) to give approval to annual implementation plan, spending plan and
annual budgetary appropriation of the Office;
    (10) to control the administration and operation of the Office to be in
accordance with this Act;
    (11) to perform other acts as prescribed by laws to be the powers or
duties of the Committee.
    The rules under (8) which limit the powers of the Secretary-General to
conduct any juristic act with the third person shall be published in the Government
Gazette.
    Section 13. The Committee shall have the power to appoint a subcommittee
to perform any act as entrusted by the Committee.
    Section 14. The provisions on administrative order and the
committee having duty to conduct administrative procedure under the law on
administrative procedure shall apply to the making of administrative order and the
meeting of the Committee and sub-committee mutatis mutandis.
    Section 15. All administrative orders made by the Secretary-
General as the registrar under the law on insurance, the law on life insurance and the
law on protection of car accident victim shall be appealed to the Committee.
    Section 16. The member of the Committee and sub-committee shall
be entitled to benefits as determined by the Minister.
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    Chapter 2
    Office of Insurance Business Regulation and
    Promotion Committee
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    Section 17. There shall establish the Office of Insurance Business
Regulation and Promotion Committee as a State agency which is not government
agency and State enterprise.
    The Office shall be a juristic person.
    Section 18. The Office shall have head office in Bangkok
Metropolitan or its vicinity and the branch office or agency may be established
elsewhere.
    Section 19. The affaires of the Office shall not be subjected to the
law on labour protection, the law on labour relations, the law on social securities and
the law on workers’ compensation, but the officer and employee of the Office shall be
entitled to benefits of not less than the benefits as prescribed in the law on labour
protection, the law on social securities and the law on workers’ compensation.
    Section 20. The Office shall have the powers and duties as follows:
    (1) to be responsible for secretariat work of the Committee;
    (2) to regulate, promote and develop insurance business according to
the policy and resolutions of the Committee as well as rules, procedure, conditions
and guidelines as determined by the Committee;
    (3) to conduct study, examination, analysis and research for the
promotion, development and regulation of insurance business;
    (4) to be owner of properties or to have properties in possession and to
be entitled to any real right;
    (5) to establish any right or to conclude any juristic act in relation to
properties;
    (6) to conclude any agreement with or to provide cooperation to any
organisation or agency, domestic or abroad, in relation to the affaires of the Office;
    (7) to prepare and provide fund for the performance of the Office;
    (8) to conduct investment in any business other than insurance
business according to the rules as determined by the Committee;
    (9) to collect and receive the counterpart fund, surcharge, fee, dues,
considerations or service charge;
    (10) to prepare and submit annual report stating performance and
hurdles of the Committee and the Office to the Council of Ministers;
    (11) to perform other acts as prescribed by laws to be the powers or
duties of the Office.
    Section 21. The capital and assets for the performance of the Office
are, viz.:
    (1) transferred money and properties under section 49;
    (2) start-up fund from the Government;
    (3) counterpart fund under section 43;
    (4) surcharge under section 44;
    (5) fee, dues, considerations, service charge or income arising from its
performance;
    (6) donated money and properties;
    (7) fruits of money or income generated from properties of the Office.
    Section 22. All incomes obtained by the Office on account of its
performance in each year shall vest to the Office so as to be paid for its operation cost
and such appropriate charges as maintenance and depreciation, remuneration of the
Committee, sub-committee and officers, counterpart fund for aids and welfares and
reserve for the expense to be paid on the course of business of the Office or other
courses.
    Incomes under paragraph one shall not be remitted to the treasury as
State fund.
    Section 23. All assets of the Office shall not be liable to the
execution and no prescription shall be set up against the Office with regard to such
assets.
    Section 24. There shall be a Secretary-General as appointed by the
Minister, with approval of the Council of Ministers, from a person selected by the
Committee.
    Section 25. A person to be appointed as the Secretary-General shall
have the qualifications as follows:
    (1) being of Thai nationality;
    (2) not more than sixty-five years of age;
    (3) being capable to conduct full time work for the Office.
    Section 26. A person with any of the following prohibitions shall
not be the Secretary-General:
    (1) being bankrupt or having been dishonest bankrupt;
    (2) being an incompetent or quasi incompetent;
    (3) having been sentenced by a final judgment to imprisonment
notwithstanding the suspension of the sentence, except for an offence committed
through negligence or a petty offence or where the punishment has undergone or the
period for determination or execution of punishment has expired;
    (4) being a director, manager or a person in charge of the
administration or management of insurance company;
    (5) being an official, officer or employee of a government agency or
State enterprise or other State agencies or local administration;
    (6) being or having been a political official, a person holding political
position, member of local assembly or local administrator, except where such person
vacates office for not less than one year;
    (7) being or having been a director or a person holding any position in
a political party or an officer of a political party, except where such person vacates
office for not less than one year;
    (8) having been expelled, dismissed or removed from the official
service, a State agency or a State enterprise on the grounds of dishonest performance
of duties or gross misbehaviour.
    Section 27. The Committee shall determine salary and other
benefits of the Secretary-General with approval of the Minister.
    Section 28. The Secretary-General shall hold office for a term of
four years.
    The Secretary-General who vacates office may be reappointed, but not
more that two consecutive terms.
    Section 29. In addition to vacating office at the end of the term, the
Secretary-General vacates office upon:
    (1) death;
    (2) resignation;
    (3) being disqualified under section 25 or being under any of the
prohibitions under section 26;
    (4) being an interest person under section 36;
    (5) being dismissed by the resolution of the Committee due to
negligent or dishonest in the discharge of duty, disgrace behaviour or incapability.
    Section 30. The Secretary-General shall be supervisor of all officers
and employee and shall be responsible for the administration of the affaires of the
Office.
    In the administration of the affaires of the Office, the Secretary-
General shall be responsible to the Committee.
    Section 31. There shall be Deputy Secretary-General in a number as
determined by the Committee to assist the Secretary-General, as entrusted, in the
performance of his duties.
    Section 32. The Secretary-General shall have the powers and duties
as follows:
    (1) to recruit, appoint, remove, promote, degrade, cut salary or wage,
impose disciplinary punishment on officer and employee and dismiss officer and
employee from office in accordance with the rules as determined by the Committee,
except where that officer holds a position of Deputy Secretary-General, high level
administrator and internal auditor, approval of the Committee must be given prior to
the so doing;
    (2) to lay down the regulations in relation to the performance of the
Office which shall not be contrary to or inconsistent with the rules or resolutions of
the Committee.
    Section 33. In the performance of duties, the Secretary-General may
entrust any officer to act on his behalf in accordance with the rules as determined by
the Committee.
    The entrusted person under paragraph one shall have the same powers
and duties as the Secretary-General in relation to the entrusted matter.
    Section 34. In relation to external affaires, the Secretary-General
shall be representative of the Office. In this case, the Secretary-General may entrust
any person to do any act on his behalf in accordance with the rules as determined by
the Committee.
    Section 35. In the case where there is no Secretary-General or he is
unable to perform his duties, the Committee shall appoint any Deputy Secretary-
General to be Acting Secretary-General. If there is no Deputy Secretary-General or
he is unable to perform his duties, the Committee shall appoint any officer of the
Office to be Acting Secretary-General.
    The Acting Secretary-General under paragraph one shall have the same
powers and duties as the Secretary-General.
    Section 36. The Secretary-General shall not be an interested person
in any agreement concluded with the Office or in any affaires he has done for the
Office whether directly or indirectly, except where he is a shareholder who makes an
investment honestly in a limited company or public company limited that having such
interests in an amount of not exceeding the rate as determined by the rules of the
Committee.
    In the case where the ancestors, spouse, descendants or ancestors of the
spouse of the Secretary-General act under paragraph one, the Secretary-General shall
be deemed to be interested person in the affaires he has done for the Office.
    Section 37. Any juristic act done in violation to section 36 is not
binding the Office.
    Section 38. The Secretary-General who vacates office shall not hold
any position in insurance company, except where he vacates office for not less than
two years.
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    Chapter 3
    Inspection and Audit
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    Section 39. The Office shall make and maintain its accounting in
accordance with international standard and accounting system of the Ministry of
Finance.
    Section 40. The Office shall organise internal audit regularly.
    The Committee shall appoint not more than three qualified members to
be the Audit Committee so as to give recommendation in relation to the result of
internal audit to the Committee.
    The Internal Auditor shall, in conducting internal audit, report the
result of internal audit directly to the Audit Committee.
    The provisions on the committee having duty to conduct administrative
procedure under the law on administrative procedure shall apply to the meeting of the
Audit Committee mutatis mutandis.
    Section 41. The Office of the Auditor-General or the independence
auditor as approved by the Office of the Auditor-General shall be auditor of the
Office.
    Section 42. The auditor shall report the result of the audit to the
Committee for further submission to the Council of Ministers within one hundred and
twenty days as from the ending date of the accounting year, and the Office shall
publicise the financial statement as audited by the auditor within fifteen days as from
the date the acknowledgement of the Council of Ministers has been given thereto.
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    Chapter 4
    Counterpart Fund
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    Section 43. The insurance company shall remit the counterpart fund
to the Office every three months for the operation expense of the Committee and the
Office.
    The rate of the counterpart fund to be remitted under paragraph one
shall be notified by the Committee with approval of the Minister. In determining such
Notification, regard shall be had to appropriate operation cost of the Committee as
well as implementation plan, spending plan and annual budgetary appropriation of the
Office, but there shall not exceed zero point five per cent of the premium in which the
insurance company received from the insured in every three months. The Committee
with approval of the Minister may, if it thinks fits, suspend such remittance
temporarily.
    Section 44. The insurance company failing to remit the counterpart
fund or remitting the counterpart fund lower than the amount as prescribed in section
43 shall be liable to surcharge at the rate of two per cent per month of the nonremitted
or deficient amount
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    Chapter 5
    Relationship with the Government
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    Section 45. The Minister shall have the power to supervise the
affaires of the Office generally. In this regard, he may order the Office to give
statement or opinion or to make a report on any matter and to suspend any act of the
Office which is, in his opinion, contrary to the policy of the Government.
    In a matter that the Committee or the Office has to submit to the
Council of Ministers, the Office shall submit such matter to the Minister for further
submission to the Council of Ministers.
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    Penalties
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    Section 46. Whoever violates section 38 shall be liable to a fine of
not exceeding one million Baht.
    Section 47. An insurance company which fails to remit the
counterpart fund or remitting the counterpart fund lower than the notified amount
shall be liable to a fine from one hundred thousand Baht to one million Baht. If there
is a consecutive offense, an insurance company shall be liable to a daily fine in an
amount of one hundred thousand Baht a day through the period of the commission of
that offense.
    Section 48. The offenses under this Act may be settled by the
Settlement Committee as appointed by the Minister.
    The Settlement Committee as appointed by the Minister under
paragraph one shall consist of three members whereby one of which shall be the
inquiry official under the Criminal Procedure Code.
    When the Settlement Committee has settled the case and the accused
pay the fine in an amount as settled within thirty days, the case is deemed to be settled
under the Criminal Procedure Code.
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    Transitory Provisions
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    Section 49. All affairs, powers and duties, properties, budget,
money of the Insurance Development Fund, money of the Life Insurance
Development Fund, money of the Compensation for Car Accident Victim Fund,
obligations, rights and charges of the Insurance Department, Ministry of Commerce,
in relation to insurance, life insurance and protection of car accident victim on the
date this Act comes into force shall be those of the Office, provided that the litigation
and disciplinary proceedings in concerning with the official or employee and budget
relating to salaries and wages and other benefits to be paid altogether with salaries of
the occupied positions shall be transferred to the Office of the Permanent Secretary,
Ministry of Commerce.
    Section 50. When this Act comes into force, at the initial stage, the
Committee shall consist of the Permanent Secretary of the Ministry of Finance as
Chairperson, the Permanent Secretary of the Ministry of Commerce, the Secretary-
General of the Consumer Protection Commission, the Governor of the Bank of
Thailand and the Secretary-General of the Securities and Exchange Commission as
members, and the person acting as the Director-General of the Insurance Department
shall be member and secretary.
    The Committee under paragraph one and the person acting as the
Director-General of the Insurance Department shall perform the powers and duties of
the Committee and Secretary-General under this Act temporarily until the
appointment of the Committee or Secretary-General under this Act which shall not
exceed ninety days as from the date this Act comes into force.
    Section 51. Subject to section 52, all officials and employees of the
Insurance Department, Ministry of Commerce, holding office on the date this Act
comes into force shall be officials and employees of the Office of the Permanent
Secretary, Ministry of Commerce, and shall perform their duties for the Office. In
this regard, it shall be deemed that such performance is made for the Office of the
Permanent Secretary, Ministry of Commerce.
    All officials and employees who perform their duties for the Office
under paragraph one shall be entitled to salaries or wages as well as other rights and
benefits equal to the amount they have received until being recruited and appointed to
hold positions in the Office. The appointment of those persons to the positions with
lower salaries or wages shall not be made.
    Section 52. An official and employee under section 51 who desires
to transfers to be the officer or employee of the Office shall submit his written
intention to his superintendent within sixty days as from the date this Act comes into
force. Whoever failing to submit his written intention within the aforesaid period
shall get back to work at the Office of the Permanent Secretary, Ministry of
Commerce.
    The recruitment and appointment of the official and employee under
paragraph one to any position of the Office shall be in accordance with the manpower
plan, qualifications and rate of salary or wage as determined by the Office, but the
recruitment and appointment of official or employee who is under litigation or
disciplinary proceeding shall be made upon the termination of the litigation or
disciplinary proceeding.
    The budget relating to salaries and wages and other benefits to be paid
altogether with salaries of the official and employee of the Office of the Permanent
Secretary, Ministry of Commerce, who is recruited and appointed to be the officer or
employee of the Office under paragraph two shall be transferred to the Office on the
recruitment and appointment date.
    The official recruited and appointed under this section is deemed to be
retired from government service because the government terminates or dissolves his
position in accordance with the law on gratuities and pensions of government official
or the law on government official’s pension fund, as the case may be.
    The employee recruited and appointed under this section is deemed to
be retired because the government terminates or dissolves his position without fault
and shall be entitled to receive gratuities in accordance with the Regulation of the
Ministry of Finance on employee’s gratuities.
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    Countersigned by:
    General Surayud Chulanont
    Prime Minister
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Source:2008, Pakorn Nilprapunt, Office of the Council of State (www.krisdika.go.th, www.lawreform.go.th)
Remark: Reference to Thai legislation in any jurisdiction shall be made to the Thai version only. 
This translation has been made so as to establish correct understanding about this Act to the foreigners.
Unofficial translation
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