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7. Liability-Loans to Staff
According to the Regulation of the General Insurance Association on Loans As Welfare to Staff, dated May 24,
2011, the fund has been established to provide a loan to the staff at a maximum limit of not more than 2 times
of the salary of the staff but not more than 50,000 Baht. The payback period is not more than 24 months.

8. Fixed Deposit with Guarantee Obligations
As of December 31, 2011 and 2010, the total amounts of fixed deposit were 176,564.36 Baht and 175,314.45
Baht respectively were used as collateral of letter of guarantee issued by the banks for the Metropolitan
Electricity Authority.

9. Deposit for Main Rice Crop Insurance Project
The Main Rice Crop Insurance Project was established in response to the resolution of the Cabinet on May 3,
2011 in order to provide a security to rice farmers and to protect the risks related to natural disaster.
The project implementation started on July 1, 2011 and shall end on June 1, 2012. The General Insurance
Association opened a bank account under the name “General Insurance Association for Main Rice Crop
Insurance” with the Bank for Agriculture and Agricultural Cooperatives, Nang Lerng Branch to receive
premium payment. The premium is divided into 2 portions. The first 50% portion shall be kept as a reserve at
the General Insurance Association to be paid as claims to the insured. The second 50% portion is given to
the insurance companies who participate in the project according to their underwriting shares. In a case where
the amount of claims and related expenses are higher than the reserve kept at the General Insurance

Association, the participating insurers shall pay different amount to General Insurance Association who would
then pay compensation to the insured.

10. Reserve for Central Administrative and 7 Committees’ Expenses.

Baht
2011 2010
Reserve for Committee

- Development and Public Relations 13,314,597.92 8,382,571.90
- Accounting & Finance and Investment 3,579,320.94 2,793,974.99
- Legal and Compliance 5,053,713.40 2,727,098.45
- Property Insurance 5,746,628.38 3,053,881.62
- Marine Insurance and Logistics 2,158,820.12 774,171.72
- Motor Insurance 15,405,694.92 13,772,076.02
- Miscellaneous, Accident and Health Insurance 2,452,749.93 2,417,804.80

Total 47,711,525.61 33,921,579.50
Reserve for Central Administrative Operation 27,578,737.72 15,065,375.58
Total 75,290,263.33 48,986,955.08

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