Page 123 - TGIA_AnnualReport2014

Report of the Legal and Compliance Committee

1. Gathering Information on Credit Ratings and Capital Adequacy Ratios (CAR) of Insurance
Companies
The Committee has set up the database of credit ratings of insurance companies by gathering the information
on credit ratings of foreign insurance companies published by credit rating agencies and the information on the
Capital Adequacy Ratio (CAR) of the domestic insurance companies to facilitate member companies in choosing
their reinsurer(s) and to be used in calculating credit risk of foreign reinsurers in compliance to the RBC criteria. The
information is posted on the website of Thai General Insurance Association, under the CAR ratio/Rating label.

2. Gathering and Pooling Laws and Regulations for E-law Library System
The Committee has gathered and pooled laws and regulations for E-law Library System for a convenience of
the users. The information is regularly updated and posted on the website of Thai General Insurance Association.

3. Preparing a Compliance Manual of Anti-money Laundering and Combating with Financing
Terrorism Laws
The Committee set a simple flow chart of work flow, process and procedures and put it with the Anti-money
Laundering and Combating with Financing Terrorism laws collection which include:
(1) Main policy is anti-money laundering and combating with financing terrorism;
(2) Minor Policy or essential points in accepting customers;
(3) Minor policy or measures that prescribe rules to management risks of money laundering and financing
terrorism;
(4) Minor policy or a must-do action plan in recruitment and personnel training;
(5) Minor policy on internal audit of operating system;
(6) Minor policy or a must-do action plan of policy development and revision;
(7) Underwriting Process and Claim Payment Process.
In addition, the Committee also published posters to acknowledge the public or customers about documents
needed in insurance application and distributed the posters to insurance companies and other related organizations.

4. Compliance to the Insurance Commission Declaration on Prescribed Rules, Procedures, and
Conditions for the Receipts of Money, Payments, Audits, and Internal Controls of Non-life
Insurance Companies B.E.2557
The Committee had prepared specimens of charter of audit committee, charter of internal audit, charter of
compliance unit, rules of money receipts and payments, and internal control policy in accordance with the Insurance
Commission Declaration on Prescribed Rules, Procedures, and Conditions for the Receipts of Money, Payments,
Audits, and Internal Controls of Non-life Insurance Companies B.E.2557, for member companies. The Declaration
was issued by virtue of section 37 (10) of the Non-life Insurance Act (No.2) B.E.2551. A company that fails to comply
with the Declaration shall be liable to a fine of up to 500,000 baht and a daily fine of up to 20,000 baht for every
consecutive day during which such failure continues.

สมาคมประกันวินาศภัยไทย | Thai General Insurance Association 121