THAI Receives Government Indemnity

During a Cabinet meeting held today (25 September 2001), the Cabinet adopted a resolution to provide a guarantee and indemnification to Thai Airways International Public Company Limited, under Aviation Hull and Liabilities in the clause related to War Risk Liabilities.

Mr. Somchainuk Engtrakul, Acting President of Thai Airways International Public Company Limited, said that “Due to the consequence of the imposed limit of liability to the third party covered under Aviation Hull and Liabilities which includes hijacking and associated perils as well as terrorist activities from USD 1,750 million to a limit of USD 50 million per single occurrence, effective from 25 September 2001 onwards. The coverage of the amount of USD 50 million was found inadequate in case of any loss caused by war risks or terrorist act. THAI requested urgent consideration and approval from the Cabinet regarding this issue today.”

The Cabinet approved and confirmed the provision of a guarantee to indemnify on behalf of THAI in excess of USD 50 million to the limit of USD 1,550 million per single occurrence for a period of 60 days from 23.59 GMT on 24 September 2001.

During the 60 day period, THAI will endeavor to arrange for the coverage of USD 1,750 million as soon as there is availability of this type of coverage in the insurance market.